The News Crypto -
- Despite trading significantly below its 2021 high, Cardano (ADA) is viewed optimistically by market participants.
- Historical analysis indicates Cardano’s potential for substantial rallies, with notable performance from late 2020 to 2021.
- Analysts like Ali Martinez and Dan Gambardello suggest varying price projections for ADA’s peak, ranging from $7 to $11.
Cardano (ADA) currently trades at a staggering 81.04% below its 2021 high of $3.10. Despite this significant gap, market participants remain optimistic about ADA’s potential to surge once the altcoin season gains momentum, which is expected to occur following the Bitcoin halving this month.
To gauge the possible extent of Cardano’s rally during this cycle’s bull season, The Crypto Basic has analyzed the asset’s historical performance, particularly focusing on the period from late 2020 to 2021.
After trading for pennies for an extended period following the 2017 rallies, ADA began to regain its footing in late 2020. The token experienced a 338% rally that year, propelling its price from $0.03283 to $0.14 by August 2020, after the Bitcoin halving in May.
Despite a significant collapse in September 2020, which saw ADA drop to $0.08, Cardano’s recovery from this point was more enduring. The cryptocurrency maintained a steady upward trajectory, reclaiming the $1 threshold by February 2021 and reaching $2.3 by May 2021.
Following nearly three months of bearish stance, ADA resumed its bullish outlook, finally hitting an all-time high of $3.10 on September 2, 2021. From the September 2020 low to the peak a year later, Cardano soared by an impressive 3,775%.
Can Cardano surge higher?
If Cardano were to repeat a similar 3,775% surge over the next year, its price could potentially expand by nearly 38-fold, putting it above $21. This substantial double-digit value has caught the attention of market analysts and investors alike.
Renowned market analyst Ali Martinez has observed that Cardano’s current pattern closely resembles those exhibited in late 2020. Based on this analysis, Martinez initially projected a $7 price point for ADA at the peak of this cycle.
However, in subsequent updates, he revised his projection to $8, which he believes is attainable by January 2025. Other market watchers, such as Cardano bull Dan Gambardello, have even suggested the possibility of ADA reaching $11.
While the growing optimism surrounding Cardano’s potential rally is undoubtedly exciting for investors, it is crucial to approach the cryptocurrency market with cautious optimism. The crypto space is known for its volatility and unpredictability, and even the most promising projects can experience significant fluctuations in price.