Cardano is currently demonstrating a distinct macro trend within a wedge formation, closely mirroring its impulsive rally from 2020. In light of the recent downturn in the broader cryptocurrency market, analyst Quantum Ascend has provided an insightful price analysis of ADA.
In a recent post on X, the analyst highlighted that Cardano is trading near the lower support trendline of a converging channel. This channel has been a consistent feature since Cardano”s market introduction, with the asset exhibiting wave-like patterns between its upper and lower boundaries. The analysis identifies key points within this channel: point (A) represents the channel”s upper limit, coinciding with the January 2018 peak of $1.317; point (B) marks the bear market bottom at $0.018 in March 2020; and point (C) signifies the 2021 peak and current all-time high of $3.10. Presently, ADA is in the corrective phase at point (D), maintaining its position above the support trendline.
Quantum Ascend anticipates a new wave of bullish momentum, potentially leading the asset to point (E). The analyst further elaborated on the upside potential for Cardano, employing Fibonacci retracement levels from previous drawdowns. For example, the analysis suggests that the upside target from the drawdown between points (A) and (B) aligns with the 4.23 Fibonacci level, estimated at $5.56. Similarly, the target from the drawdown between points (C) and (D) also points to a 4.23 Fib. level around $12.40. Additionally, assessing the drawdown from the peak during the Trump-inspired rally to December 2024″s high of $1.32 reveals a 4.23 Fibonacci level near $4.46.
Based on these calculations, the analyst has set a conservative target for the upcoming wave (E) rally within a range of $4.88 to $5.50. Notably, his primary target aims for a staggering 2,500% increase, positioning Cardano at a new all-time high of $10.4. Quantum Ascend believes that reaching the $10 mark is a feasible goal, citing that ADA previously surged by 16,773% from point (B) to (C) between 2020 and 2021, and experienced a 7,431% increase from its 2018 lows to the channel”s upper limit at point (A).
The analyst also pointed out that the current price action of Cardano resembles its performance in 2020, which served as a precursor to the peak in 2021. During the correction phase from points (A) to (B), Cardano retraced from $0.107 to the bear market low of $0.018, first touching the 0.50 Fibonacci level at $0.091 before reaching that low. This pattern is now repeating, as Cardano rallied to August”s high of $1.02, aligning once again with the 0.50 Fibonacci level from the earlier correction.
