Cardano’s Accumulation Phase and the Anticipated Surge
For the past few months, Cardano (ADA) has remained in an accumulation phase, distinguishing itself from the rapid surges observed in other major cryptocurrencies. The prolonged consolidation and the tightly confined trading range are laying the foundation for a potential explosive breakout, as envisioned by one crypto analyst.
Tim Warren’s Bullish Chart Analysis
Tim Warren, one of the hosts of the Investing Broz show on Discord, recently shared an exceptionally bullish Cardano chart on X (formerly Twitter). In this chart, Warren highlights Cardano’s impressive historical price performance.
Cardano’s Remarkable Historical Performance
The chart illustrates that ADA’s price plummeted by approximately 98% from its previous all-time high, which it achieved in 2018. By 2020, ADA’s price had dwindled to as low as $0.018. However, an unexpected turnaround was on the horizon. ADA embarked on an astonishing rally, ultimately reaching a new all-time high of $3.10 in 2021. This extraordinary journey equated to a staggering 16,500% surge.
A Potential Paradigm Shift
Applying this historical performance to ADA’s current price level implies the possibility of a similar rally. At present, Cardano’s price is situated around 92% below its previous all-time high, bringing it close to the 2020 level.
Should ADA emulate its historical trajectory, a 16,500% surge from its current price would propel the digital asset to a peak value of $40.
ADA’s Value Proposition and Supporting Factors
In response to Warren’s chart, Chris O, a user on X and the founder of Ghost Fund DAO, a protocol on Cardano, expounded on the value proposition of ADA. Chris highlighted that ADA’s previous 16,500% surge occurred without support for critical elements like smart contracts and decentralized finance (DeFi).
The Network’s Enhanced Ecosystem
However, with Cardano now facilitating smart contracts, DeFi, and more, Chris sees this as a catalyst for significant growth. He pointed to the presence of DeFi, a rising Total Value Locked (TVL), non-fungible tokens (NFTs), and prominent sidechains within the Cardano network. Furthermore, Chris noted the launch of various protocols across these sectors.
A Promising Future
Considering ADA’s previous accomplishments without comprehensive support, Chris believes that a “25x – 40x is a very reasonable expectation.” He encouraged others to “drown out the noise” and referred to Warren’s chart as a “simple chart showing FUTURE opportunity.”
If Cardano replicates its 2020-2021 rally, a 40x surge could be just the beginning of the digital asset’s remarkable journey.