Cardano (ADA) continues to face a sluggish trading environment, with its price stagnating around $0.45 for several weeks. This lackluster performance follows a significant price correction, witnessing a drop of approximately 45% between mid-March and mid-April.
Adding to the challenge, ADA recently ceded its market capitalization position to Dogecoin, with the latter’s market cap now a staggering $7.1 billion higher than Cardano’s.
In response to ADA’s persisting price weakness, Charles Hoskinson, the founder of Cardano, has also expressed dissatisfaction with the coin’s performance. Hoskinson recently reacted to a meme tweet shared by a prominent ADA proponent, highlighting the ADA’s inability to break past the $0.45 mark. His response, in the form of a meme of a skeleton seemingly waiting for something, resonated with many in the community who share his frustration.
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However, despite the price challenges, analysts maintain a cautiously optimistic stance. ADA has been trading in a sideways channel between $0.40 and $0.80 since the price surge in late November last year. Analysts point out that a breakout above this channel could propel ADA to higher levels. However, a drop back below this point could signal a reversal. Another support zone exists at $0.42, historically triggering rebounds. A failure to hold this level could intensify selling pressure.
An analyst under the pseudonym “Wizard of Charts” raised the possibility of a bullish surge, drawing parallels from historical growth trends. In an analysis shared on the markets analysis platform TradingView, the pundit pointed out the 2021 bull market, when ADA experienced a staggering upsurge of over 1,600%, printing an all-time high. Borrowing from this precedent, the analyst proposed that even a conservative projection, representing roughly half of the previous percentage increase, could propel ADA to a remarkable $25.
“If we extrapolate from the previous high of $3.2 and apply a further 700% increase, we’re looking at approximately $25. It’s crucial to remember the swift dynamics of bull cycles; historically, they’ve unfolded within 217 days, whereas bear markets tend to persist for around 1000 days.” He added.
Recall that earlier last month, popular crypto analyst Ali Matinez shared an optimistic outlook on Cardano’s potential for a significant bullish trend. Matinez drew parallels between the present market dynamics and Cardano’s performance in 2019, pinpointing striking similarities indicative of a consolidation phase akin to the one observed prior to a remarkable bull surge of approximately 4,095%. Notably, Matinez’s analysis remains relevant and steadfast.
According to CoinMarketCap data, ADA was trading at $0.46 at press time, reflecting a 0.21% surge over the past 24 hours.
