Summary:
– Cardano’s price is revisiting its established upward channel for the third time since the start of 2023.
– The previous rebounds resulted in significant rallies of 200% and 300%.
– Analysts identify a repeating pattern, forecasting a potential rise to $2.40.
– Fibonacci extensions and the channel structure support a bullish outlook.
Article:
Cardano may be on the verge of a breakout. Since early 2023, the price has rebounded twice from the same channel, each time triggering substantial percentage gains. Currently, the price is testing this trendline again, with traders eyeing $2.40 as the next potential target.
Analysis Suggests Major Cardano Price Movement Possible
Cardano has consistently followed an upward price channel for over a year, as shown in a chart from Bitcoinsensus. Since early 2023, ADA’s price has adhered to this pattern, rebounding sharply from the lower boundary each time. The initial rebound led to a 200% surge, followed by a 300% increase on the next.
A tweet from Bitcoinsensus highlighted, “CARDANO MASSIVE UPTREND OPPORTUNITY 📈🔥 $ADA has remained within this clean ascending channel since early 2023, consistently delivering substantial gains upon hitting the bottom trendline.”
Currently, ADA is trading at $0.87, just above this crucial support level again. If history repeats, Cardano might be set for another significant upswing, potentially reaching a price near $2.40, representing a 550% increase from its current level.
Analysts note that this isn’t random movement. The recurring structure, with its higher lows and highs, strengthens confidence in the pattern. Bitcoinsensus referred to this as a “fractal,” suggesting that these repeated shapes often guide price movements. Each bounce has followed this setup.
ADA’s current position mirrors earlier launch points closely, reinforcing confidence in the pattern. This setup isn’t driven by hype but by consistent price behavior in this channel.
Fibonacci Levels Reinforce $2.40 ADA Price Target
The anticipated price of $2.40 aligns with key Fibonacci extension zones, which traders use to predict potential reversal or stall points. In this case, the $2.40 level matches important extensions that align with the channel’s upper boundary.
This makes the target even more appealing to chart-watchers. ADA must surpass its mid-range levels and sustain momentum. However, if the structure holds, reaching the upper limit seems feasible.
ADA has experienced a 17% rise over the week, though it’s slightly down in the past 24 hours. The market remains cautious, but such conditions often favor structure-driven trades.
Many traders are observing whether ADA will confirm support at the channel’s bottom once more. If it does, the pattern remains intact, and the $2.40 target could become a reality soon.
This article was originally published on Blockonomi.
