Benzinga - Renowned crypto analyst, Ali Martinez, predicts a consolidation phase for Cardano (CRYPTO: ADA) before a potential breakout.
What Happened: On Wednesday, Martinez took to X, formerly Twitter, to express his views on the current state of Cardano, a currency sometimes labeled as an Ethereum (CRYPTO: ETH) killer.. He believes that the cryptocurrency is exactly where it should be, consolidating in the $0.55 to $0.80 range, before a potential breakout to $1.70.
Nothing has really changed for #Cardano. $ADA is exactly where it should be, consolidating in the $0.55 to $0.80 range before a breakout to $1.70! https://t.co/414rFQhxLf pic.twitter.com/Djx9YqOp7F— Ali (@ali_charts) April 9, 2024
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This comes in the wake of Cardano’s ADA/USD price decreasing by 4.39% over the past 24 hours to $0.57, continuing its downward trend over the past week of -3.0%, moving from $0.59 to its current price.
Cardano has failed to give its investors any gains so far this year. While the apex cryptocurrency Bitcoin (CRYPTO: BTC) has gained almost 60% since 2024 began, Ethereum has shot up 50% in the same time frame. Cardano on the other hand is down 1.2% on a year-to-date basis.
Why It Matters: Cardano’s recent performance has been muted throughout this bull run, leading analysts to wonder whether the lull in activity may precede consolidation or a price drop. Grayscale’s recent decision to dump its Cardano holdings has further fueled this speculation.
However, Martinez’s prediction suggests a different trajectory for Cardano. If his prediction holds true, the current consolidation phase could be a precursor to a significant price breakout.
Price Action: ADA was seen trading 0.3% higher at $0.59 at the time of writing, according to Benzinga Pro data. If Martinez’s potential breakout of $1.70 is realized it will have to appreciate nearly 188% from the current levels.
Photo by Avi Rozen on Shutterstock
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