After a period of decline and stagnation, the native token of the Cardano blockchain, ADA, experienced a significant price surge in late 2023. As a potential competitor to Ethereum (ETH), ADA has seen its fair share of ups and downs. Starting its upward journey in mid-October 2023 at $0.25, it reached $0.66 in mid-December before mostly falling since then.
However, ADA has recently started rising again and finds itself in an interesting position. Despite being on a downtrend, it has the potential for a major comeback.
Cardano eyes 32% rally
Crypto analyst Ali Martinez pointed out that ADA is forming a descending triangle formation chart pattern, which is typically considered a bearish signal in technical analysis. However, Martinez believes that ADA could break out and rally up to $0.68, representing a 32% increase, if it can sustain a daily close above $0.53.
ADA price analysis
At the moment, ADA appears to be on track for a breakout as it has risen 9.24% in the last 24 hours to reach $0.53. However, there has been a break in the recent uptrend as the token failed to stay above $0.53 and retraced slightly before retesting that level.
Looking at the one-year timeframe, ADA has shown impressive growth with a 32.92% increase. The cryptocurrency saw a surge of 77.68% in the past six months after experiencing a downtrend in the first half of 2023.
In 2024, Cardano has mostly been declining with some volatility and is currently down 15.24% since January 1 and 2.43% in the last 30 days. However, there was a 3.06% rise last week, with most of it happening in the past 24 hours of trading.
Hot Take: ADA’s Potential for a Comeback
Despite its recent downtrend, Cardano’s ADA has shown potential for a major comeback. With the formation of a descending triangle pattern, there is a chance for a breakout and a rally of up to 32% if ADA can sustain a daily close above $0.53. This surge comes after months of decline and stagnation, indicating that ADA may be gaining momentum once again.
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