The cryptocurrency market‘s total capitalization has re-visited the $2.5 trillion level, untouched since 2021. Cardano (ADA) still lags behind in performance while mirroring what could be the start of a parabolic move toward $10.
On that note, the crypto trading expert Ali Martinez shared a technical analysis on March 4, exploring this possibility. According to Martinez, Cardano’s native token, ADA:
“Seems to be mirroring its previous bullish cycle. If this pattern continues, we could witness a brief correction before $ADA goes parabolic toward $10!”
– Ali Martinez
Notably, Cardano broke out from a consolidation range in the weekly chart, as per the expert’s analysis. This same pattern happened in 2019-2020, before the remarkable rally toward $3.10 in 2021. Thus, a target of around $10 per token is on the table if ADA price mirrors its previous run.
50-week EMA also supports Cardano’s parabolic run to $10
Previously, Finbold had already published a similar analysis looking at another relevant long-term technical indicator, the exponential moving average (EMA).
In particular, we pointed out that the 50-week EMA has historical relevance for Cardano as a support and resistance. Therefore, the recent breakout could ignite a similar rally to the one following 2020’s breakout.
The 50-week EMA could later act as a support for ADA’s correction, which Ali Martinez is also forecasting will happen.
Nevertheless, the previous analysis explained that a parabolic run to $10 would require a superior demand than what Cardano got in 2021’s cycle. This is because ADA’s supply has increased through the token’s inflation in the past 4 years.
Moreover, the higher capitalization it gets, the lower volatility is further expected, which means lower upside potential.
Cardano DeFi ecosystem growth
In this context, Cardano’s decentralized finance (DeFi) ecosystem has grown to a record size with thriving protocols. The total value locked (TVL) has reached an all-time high of nearly $500 million invested in 35 Web3 protocols. This was achieved on March 4, according to data from DefiLlama retrieved by the time of writing.
Essentially, a growing ecosystem increases the demand for ADA, as its native token. Thereby, fueling a potential parabolic run toward $10 under a continuous surge and usage.
All in all, a parabolic move to $10 is possible under the right conditions for Cardano, although unlikely in the short term. However, ADA is currently dominated by a bullish sentiment supported by historical indicators. Investors must remain cautious and understand the fundamentals behind the project while deploying capital.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
The post Will Cardano go parabolic toward $10? This expert thinks so appeared first on Finbold.
