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- Analysts from the Ben Armstrong YouTube channel predicted that ADA could reach $0.37 in the medium term.
- The S&P 500 index rising could increase the probability of ADA’s price rising, according to the analysts.
- ADA was able to break out of a bearish chart pattern and may now rise to $0.37 as a result.
Analysts from the cryptocurrency trading and analysis channel Ben Armstrong predicted that Cardano (ADA) could surge 44% in the medium term. In addition to this bullish prediction, the analysts also speculated that the altcoin’s price could reach $5 during the next bull cycle.
In the video, the analysts noted that the S&P 500 index had broken below a positive trend line on its charts. Since then, however, the index has recovered to trade back above the trend line at press time.
Daily chart for S&P 500 Futures (Source: TradingView)
Although the S&P 500 and the cryptocurrency market are not strongly correlated, the analysts mentioned that upticks in the traditional stock market increase the probability of prices in the cryptocurrency market rising. As a result, the S&P 500 recovering over the past few days could lead to ADA’s price entering into a strong move towards the upside.
Meanwhile, a medium-term descending triangle was present on ADA’s charts, which suggested that the altcoin’s price could continue its downward trend if it breaks below the base of the chart pattern. Notably, the altcoin has tested this support level, at around $0.2375, several times before but bulls were able to defend the mark.
Daily chart ADA/USDT (Source: TradingView)
As a result, a bullish divergence had formed on ADA’s charts, noted the analysts. At the time the video was published, ADA’s RSI indicator printed higher lows while ADA’s price remained somewhat dormant. This bullish divergence played out over the past few days, resulting in the cryptocurrency breaking out of a significant bearish chart pattern.
Subsequently, ADA may begin to climb to the $0.37 target mentioned in the video. However, it was trading at $0.25 at the time of press, so such a move is most likely not imminent. From a longer-term perspective, the analysts predicted that ADA could rise to $3 in the next bull cycle.
One of the analysts even discussed the possibility of it climbing to $18 during this period. Their bullish outlooks stemmed from the fact that Cardano’s DeFi ecosystem has grown exponentially during this latest bear market, adding to ADA‘s intrinsic value.
The post ADA’s DeFi Growth May Be a Catalyst for It to Reach $5: Analysts appeared first on Coin Edition.