Cardano To Soar 22X? Analyst Sees Opportunity Despite On-Chain Decline
The Cardano market (ADA) is now at a crossroads, going through tough times with the cryptocurrency market heating up. Despite the latest $73,000 mark that Bitcoin had attained today, the Cardano trade is losing its way forward, at the current time trading at $0.356.
That amounts to 12% of lost value compared to what the coin hit just last month. Today, ADA won a minimal 2.2%, but investors see it failing in comparison with newer coins, which now are rapidly growing in prices.
Historical Trends Show Headroom For Further Growth
For ADA holders, crypto expert Ali Martinez has some encouraging news. He thinks Cardano might behave in line with its spectacular 2020 expansion. Following a protracted consolidation period, ADA surged by almost 4,000% and peaked at $3.10 within 10 months.
I believe #Cardano $ADA is following a similar pattern to 2020. If history repeats, we might see a pump around November 18about two weeks after the US electionsand a potential market top by September 2025. pic.twitter.com/GgKWBqzYXU
Ali (@ali_charts) October 29, 2024
Martinez thinks if history repeats itself, we may see a price jump starting around November 18, 2024two weeks after the US elections.
As of now, Martinez said ADA has spent 455 days in a range since the last peak, and may hit $6.50 in September 2025 as it is going to skyrocket by 2,288%.
ADA market cap currently at $12.4 billion. Chart: TradingView.com
On-Chain Activity Raises Concerns
A fresh analysis from IntoTheBlock that showed Cardanos Network Value to Transactions (NVT) ratio has surged to its highest level since June adds to the concern. Often preceding price pullbacks, this statistic points to a decrease in on-chain activity relative to price increases. The report underlined that ADA might struggle to keep increasing pace without more on-chain involvement.
Cardanos NVT ratio has surged to its highest level since June, indicating a decrease in on-chain activity relative to price growth.
This classic overvaluation signal is notable given $ADAs recent underperformance, suggesting the potential for further downside.
Historically, pic.twitter.com/yTx83exBXM
IntoTheBlock (@intotheblock) October 29, 2024
Despite these challenges, some analysts are optimistic about Cardanos long-term horizon. They foresee an estimated 130% growth in the next three months and an impressive 140% increase in the next year. This gap between short-term struggles and long-term optimism would suggest that Cardano has short-term pain ahead but that significant recovery is on the horizon.
The Road To Recovery For CardanoThis is a challenging time for Cardano as investors monitor closely its price movement and the behavior of trading with the token. As long as concerns over further dips linger, there are some individuals that believe this is a good opportunity to enter the ADA market before it takes off.
Analysts like Ali Martinez offer hope based on previous tendencies despite Cardanos recent performance. ADA needs the next several weeks to solidify its position in the fast-changing crypto industry. Investors will monitor to see if Cardano can restore market momentum.
Featured image from CoinFlip.tech, chart from TradingView
Read more: https://www.newsbtc.com/news/cardano-to-soar-22x-analyst-sees-opportunity-despite-on-chain-decline/
Text source: NewsBTC
