- Cardano (ADA) has been predicted to bounce back from the current level to hit $4 in the next 30 to 60 days.
- Another analyst has observed that ADA recorded a massive dip in the previous cycle before hitting its all-time high; henceforth, the current market situation could be a repetition of history.
Cardano (ADA) recently recorded a yearly high of $1.3 after breaking crucial resistance levels. However, the asset has since declined by a considerable margin as it records a 20% decline on the weekly price chart. In the last 24 hours, ADA has declined by 8.5% and is trading at $1.016.
Looking for possible reasons, we discovered that the broad market has suffered its fastest flush-out since September as traders take profit.
Coinglass data disclosed that crypto liquidation reached $1.76 billion in 24 hours. Out of this, $1.58 billion was in long liquidations, and $185 million was in short liquidations. Fascinatingly, 583,647 traders liquidated within the period in the last 24 hours. The largest occurred on Binance with the ETH/USDT pair recording a liquidation of $19.69 million. According to analyst Michael van de Poppe, some cryptos lost about 30% of their value.
That’s the flash crash drop on altcoins. Some have dropped by 30% on the day. Don’t worry; this will reverse back fast; you’d want to see such a massive collapse and liquidity wipe. Onwards we go.
Analyst Ali Martinez believes ADA could rebound to hit $4. Previously, Martinez shared a price chart to highlight a historical trend, with the current price repeating a 2020 movement. According to him, he will continue to accumulate the asset even if it extends this bearish phase. This aligns with our recent report that ADA could hit $2 in the near term.
Even if it dips down to $0.76, I’m buying more and plan to book profits between $4 and $6.
Cardano’s (ADA) On-chain Activities and Analysts Prediction
Looking into Cardano’s on-chain data, we observed that the Futures Open Interest (OI) of ADA had fallen by 25%. Meanwhile, the Relative Strength Index (RSI) was resting at 53, signaling a neutral sentiment. Further analyzing Martinez’s thesis, we discovered an interesting trend at the $1.2 mark.
According to him, this level was a major support area where 93,000 addresses had purchased 2.54 billion ADA. Per his observation, $1 is the next point of mass accumulation.
Analyzing another thesis by analyst Dan Gambardello, we observed that ADA could hit a new all-time high price in the next 30 to 60 days. His prediction was also based on the consistent patterns from previous market cycles. Additionally, he based his prediction on the booming network activities as the asset crosses one million transactions per second.
Elaborating on this, Gambardello highlighted the recent sentiment around Donald Trump’s re-election and the potential appointment of former SEC commissioner Paul Atkins as the agency’s Chairman.
Cardano All-Time High In 30-60 Days (ADA Linked To Trump SEC Pick) Intro 00:001,000,000 TPS! 1:35 Trump SEC pick tied to cardano 3:25 Crypto/com 5:00 Important monthly cardano chart 6:05 Potential ADA dip makes sense 7:30 The path to all time high 9:30 pic.twitter.com/lCKKpe8NUa— Dan Gambardello (@cryptorecruitr) December 4, 2024
Technically, the analyst pointed out that the asset is testing a critical resistance level, which he described as the “bull market doors.” This aligns with its previous journey to the top, as ADA recorded a series of dips before reaching $3. Per his observation, ADA could breach this level by December 31 if the asset repeats the movement in the previous cycle.
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