A crypto analyst, Ali Martinez, predicted Cardano (ADA) would hit $5. In his analysis, Martinez spotted that ADA was following a similar structure to that of the 2020-2021 bull run. As such, he believes, “it feels like we’re right at the beginning of an explosive move.”
Back in 2020-2021, the token was crashing until it reached the Fibonacci 0 level. Thereafter, ADA recovered and tested the resistance level at the 0.382 fib level. With the mounting bull pressure, the token turned this resistance into support and spiked up. Since Martinez saw ADA fluctuating just above the 0.382 fib level, he expects Cardano to reciprocate its historical behavior.
Cardano is currently trading at $0.735 after shedding more than 12% in the last week. The tokens’ 24-hour trading volume is down by 28% and it has reached $717 million.
ADA targets $0.8 as it declines inside a falling wedge
On the 4-hour chart, ADA is trading inside a falling wedge, and it is currently testing the upper trendline. As the ADA tests the upper trendline, the Bollinger bands signal that the market is overbought. Therefore, the price might retrace and fall towards the lower trendline, and continue forming the wedge. Once fully formed, ADA will break out and cross above $0.8.
Cardano bulls are about to gain control of the weekly chart
On the weekly chart, ADA is forming a bull flag. Inside the flag, the token makes lower highs and lower lows; this is a cooling phase for the market.
The prices usually tend to move sideways or shift a little downwards. During this phase, the volume declines, and it shows that sellers aren’t interested and the buying pauses. Once the breakout happens, the buyers will be back in numbers. With a rally supported by volume, ADA could hit $1.8 or higher.
