- An analyst has explained how, if the historical pattern followed by the ADA price is to be believed, Cardano seems ready to go on a parabolic bull run.
- Cardano was stuck inside a similar parallel channel in 2023, and has recently broken out of this channel with a rally of around 72%.
- Despite a recent drawdown of 50%, the analyst suggests this could set the stage for a new bull run.
Cardano’s ADA cryptocurrency appears poised for a parabolic bull run, according to historical trends and recent market movements. Could this be a prime buy-the-dip opportunity?
Cardano May Be Set For A Bull Run Based On Historical Trends
In a new post on X, analyst Ali Martinez has discussed what hints history may contain regarding where ADA’s price would go next from here. The chart shared by the analyst shows the trend the cryptocurrency followed back in 2019, with the asset first consolidating inside a parallel channel. This is a region bounded by two parallel trend lines in technical analysis (TA), with the upper line connecting the tops in the price, and the lower one joining the bottoms. A break out of either of these lines can imply a continuation of the trend in that direction. As is visible in the chart, ADA managed to break out of this past parallel channel with a 75% surge, followed by a correction of around 56% before finally lifting off into a massive 4,095% bull run.
Recent Movements Echo Past Trends
Interestingly, just like in 2019, Cardano was stuck inside a similar parallel channel in 2023. The chart below shows this recent pattern for the cryptocurrency. As displayed in the graph, Cardano broke out of this latest parallel channel a while ago, this time with a rally of around 72%. Recently, though, the asset has lost this bullish momentum, as it has seen a drawdown of 50%. According to the analyst, however, this can, in fact, set the stage for a new bull run.
Conclusion
History doesn’t repeat itself, but it often rhymes! If that is the case for Cardano, we should be positioning ourselves for what’s coming, understanding that the recent price correction might just be one of the last buy-the-dip opportunities ADA will give you. It now remains to be seen whether ADA will repeat the pattern from the last bull run or not. This is more about the long-term view, though, so where might the asset go in the short term? This may be answered by a signal that the analyst has shared in another X post. At the time of writing, Cardano is trading around $0.464, down 3% over the past week.
