As a seasoned crypto investor with over a decade of experience in this wild and ever-evolving digital frontier, I’ve seen more than my fair share of market swings that would make even the most hardened Wall Street veteran feel queasy. Yet, I must confess, the current price action of Cardano‘s native cryptocurrency has left me with a peculiar mix of apprehension and anticipation.

TL:DR;

  • Cardano’s native cryptocurrency, alongside the rest of the market, has slumped hard on a weekly basis, dropping to well below $1.
  • However, history shows that similar corrections have been followed by massive gains for the asset, with predictions of up to $6.

The current trend of ADA‘s price can be examined from two distinct viewpoints – short-term and long-term. Over the past ten days or so, the situation seems rather bleak as the asset dropped from $1.2 to nearly $0.8. Despite a slight recovery to $0.9 currently, it remains 25% lower than its value on December 12.

Despite the larger view suggesting one thing, a contrasting scenario is evident when it comes to ADA’s price. For several weeks leading up to the U.S. presidential elections and the optimistic remarks made by the founder of IOG (Input Output Hong Kong), Charles Hoskinson, the value of ADA remained within a narrow band, fluctuating between $0.3 and $0.4.

After reaching an all-time high of more than $1.3 at a later point, it has since corrected to $0.9. However, despite this correction, it remains a staggering 160% increase over just under two months.

In the initial situation, there’s more discomfort at present, but considering broader trends like the ongoing bull market, the second situation turns out to be more significant. As a result, crypto analyst Ali Martinez emphasized a long-term view to conclude that ADA’s recent downturn might unexpectedly prove beneficial.

Reflecting on the current market situation, I’ve observed that the token seems to be mirroring a familiar pattern from the 2020 cycle. Notably, just as it did then, our asset experienced its first significant pullback following a strong rally, coinciding with the correction we’re witnessing today.

Given these circumstances, he anticipates that the value of ADA might surpass its all-time high (ATH) in 2021, which was $3.09 (as per CoinGecko), and potentially reach a higher record of around $6.

Cardano’s $ADA price movement seems to be mirroring its past trend. In 2020, following the initial bull run, the first significant correction took place around the same period as the one we are encountering now.

$6 next!

— Ali (@ali_charts) December 22, 2024

It’s worth noting that such a price tag would put ADA’s market capitalization at well above $200 billion, which would make the asset the third-largest, at least according to how the market looks today.

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2024-12-22 16:28