Cardano (ADA) has seen an uptick in trading activity, surging over 7% on Thursday and exchanging hands at $0.53. The blue-chip coin crossed the $0.53 mark twice in February after January was filled with tumultuous price action.
Following this week’s surge, analysts on social media are discussing and speculating on the factors that could decide ADA’s trajectory moving forward, such as the Bitcoin halving, new protocol changes, demand, and more.
First, technical analyst Ali (@Ali_Charts on X) pointed out a descending triangle formation on ADA’s daily chart, suggesting that a sustained daily close above $0.53 could trigger a 32% rally, potentially driving ADA’s price up to $0.68.
#Cardano shows signs of a descending triangle formation on its daily chart. A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68! pic.twitter.com/DoizuVPiRI
— Ali (@ali_charts) February 8, 2024
Several factors are contributing to ADA’s price dynamics at press time. Despite the bearish tests across January, ADA has held above $0.50 following a significant rally in early December, and the majority of ADA token owners are currently holding the asset at a profit.
As CryptoPotato reported, Coinglass data shows a rise in ADA’s Open Interest and trading volume by 12% and 62% across major exchanges like Binance, Bybit, and Bitmex. However, some users noted that the descending triangle pattern is traditionally bearish, while others interpreted it as potentially bullish for ADA due to current market conditions.
Can the BTC Halving Boost ADA?
Meanwhile, Dan Gambardello, a popular technical analyst at Crypto Capital Venture, examined historical trends in his recent YouTube video, comparing BTC and ADA’s price dynamics.
The analyst says that in the previous cycle, Bitcoin entered a bull market phase around November 2020, experiencing a surge in price while ADA was trading at around 15 cents. By comparing the timing of this event to the current cycle, the analyst speculates that ADA’s price movement could coincide with Bitcoin’s next halving event, potentially reaching $0.60 – $0.70.
However, some analysts have warned of market volatility and potential price swings as specific indicators like the Bollinger bands are at historically low levels. Meanwhile, other market observers believe Bitcoin could drop to $31,300 based on specific parameters.
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