On January 4th, cryptocurrency analyst Ali Martinez reported that Cardano whales have acquired over 14 million ADA tokens in the last two weeks, valued at approximately $8.4 million at the current exchange rate.
These substantial purchases by high-net-worth investors are commonly interpreted as a bullish signal for the specific cryptocurrency’s price, despite Cardano experiencing a nearly 20% drop this week, reaching $0.50, following Bitcoin’s 10% pullback due to a pessimistic report on the potential approval of a spot ETF in the U.S.
However, at the moment of writing this note, ADA is trading at $0.527, having increased by 14% since yesterday’s minimum price.
Ali predicts ADA’s price increase for 2024
Cardano, one of the most innovative smart contract platforms competing with Ethereum, has had a mixed performance in recent months amid significant fluctuations, influenced by Bitcoin’s decline and the U.S. Securities and Exchange Commission’s allegations that ADA is a security.
Nevertheless, the company responsible for Cardano’s ecosystem development, Input Output Global (IOG), has repeatedly asserted that the SEC is mistaken, emphasizing that ADA is not and has never been a security under U.S. law.
Despite IOG’s less optimistic statements about ADA, Ali Martinez maintains his prediction that ADA’s price is in a consolidation phase expected to last until mid-July 2024.
According to Martinez’s shared chart, once ADA exits this consolidation phase, the price should aim for approximately $4, marking a staggering 600% increase.
Analysts suggest a breakthrough
As reported by ZyCrypto recently, analyst LuckSide pointed out that ADA is at a critical juncture, either breaking the resistance at $0.67 and rising above $0.70, a price not reached in the last 17 months, or falling back to $0.40, which did not occur on January 3rd.
Similarly, analyst Dan Gambriello also anticipates ADA’s potential rise if it manages to break its current symmetrical triangle pattern, projecting it above $0.80.
Currently, Charles Hoskinson’s project coin is trading 81% below its historical peak, reached in August 2021. Will ADA break the downtrend and reclaim its glory days?
