Cardano (ADA) continued to trade under pressure on Wednesday. The recently ranked top-10 cryptocurrency ranked 11th by market capitalization after being overtaken by Toncoin (TON).
At press time, ADA was hovering around $0.337, up a modest 0.76% in the past 24 hours but still down significantly from its April highs above $0.65. Notably, the daily chart shows ADA trapped in a prolonged downtrend since early May, punctuated by brief rallies that have failed to reverse the overall bearish momentum.
Despite the lackluster price action, community sentiment on CoinMarketCap remains bullish at 87%, suggesting a disconnect between short-term market performance and long-term holder optimism. Additionally, analysts are also predicting a turnaround in price.
One such analyst, “Crypto Winkle,” shared an upbeat forecast on Wednesday, alerting the Cardano community to a potential massive breakout.
Winkle noted that the descending triangle pattern, which has pressured the asset for months, has now been broken. He further highlighted several technical indicators supporting his optimistic outlook, including an RSI of 45, “perfectly primed for a rally,” a bullish MACD crossover, and confirmation of the triangle breakout.
“My bold prediction: ADA is gearing up to test the $1 mark! That’s nearly a 3x from current levels.” He noted.
This sentiment is echoed by Dan Gambardello, who drew parallels to ADA’s performance in October 2020. In a YouTube video, Gambardello reminded viewers that ADA surged from $0.10 to see gains of around 3,000% in the previous market cycle, suggesting a similar pattern could unfold. He further emphasized Cardano’s fundamental strengths to drive this surge, stating, “Cardano is 10x stronger than last cycle at this moment: owned by community, IOG burned keys, Hydra scaling, higher market cap position, massive partnerships, unmatched L1 security.”
Elsewhere, popular crypto analyst Ali Martinez also weighed in on ADA’s outlook, suggesting that current market sentiment may present a unique opportunity for investors. In a tweet, Martinez observed that Cardano holders appear to be in the “depression phase” of the market cycle. He, however, cautioned against selling in this phase, arguing that accumulating ADA while pessimism is high could be a wise long-term strategy.
However, not all analysts share this bullish outlook. A TradingView analyst offered a more cautious perspective, warning of a potential 20% price crash in the short term to around $0.2753 or even $0.2384. The analyst pointed to bearish technical patterns on the daily chart, noting that ADA continues to struggle below the critical EMA200, which signals a persistent bearish bias.
That said, amidst these mixed signals, Cardano continues to make progress on its development roadmap. The recent Chang hard fork and Midnight upgrades have enhanced the network’s scalability and smart contract capabilities, potentially setting the stage for increased adoption and utility. However, the impact of these technological improvements on ADA’s price action remains to be seen in the short term.
