Having spent years tirelessly working to develop its ecosystem, the native token of the Cardanoblockchain – ADA – experienced a veritable price explosion in late 2023 after spending well over a year in decline and stagnation.
As a major candidate to be the Ethereum (ETH) killer, the cryptocurrency is no stranger to sudden rises and falls and has, in recent months, indeed done both, starting its upward journey in mid-October 2023 near $0.25, surging to $0.66 in mid-December and mostly falling since.
The token has, however, again started rising sharply in the last 24 hours and finds itself in a peculiar position where – despite being on a decisive downtrend – it has the potential to make a major comeback.
Cardano eyes 32% rally
On Thursday, February 8, the prominent crypto analyst Ali Martinez took to X to point out that ADA has started forming a descending triangle formation chart pattern – a strong bearish signal in technical analysis (TA).
The pattern is formed when a series of lower highs and a lower resistance level are traced with two trendlines.
Despite it showing a bearish chart pattern, Martinez believes that ADA has an opportunity to break out and rally as much as 32% – up to $0.68 – should it manage a sustained daily close above $0.53.
ADA price analysis
At press time, ADA appears poised to succeed in its breakout as it rose 9.24% in the last 24 hours to the price of $0.53. There has, however, been a notable break in the uptrend seen in the most recent period, as the token has failed to stay above $0.53 and slightly retraced before retesting the threshold.
Zooming out to the 1-year time frame, it becomes evident ADA managed an impressive increase and is 32.92% in the green in the 52-week period. The entirety of the current rally took place in the last 6 months as they saw the cryptocurrency surge 77.68% after spending the first half of 2023 on a downtrend.
Looking at 2024, Cardano has mostly been declining – albeit with significant volatility – and is 15.24% in the red since January 1 and 2.43% down in the last 30 days. On the other hand, last week saw a 3.06% rise, which is mostly accounted for in the latest 24 hours of crypto markettrading.
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