Here’s how Cardano’s 17% weekly correction can help ADA reach $6 this cycle: analyst

TL:DR;

Cardano’s native cryptocurrency, along with the rest of the market, has fallen sharply on a weekly basis, falling well below $1. However, history shows that similar corrections have been followed by massive gains for the asset, with predictions as high as $6. ADAUSD. Source: TradingView

ADA’s recent price performance could be analyzed from two main perspectives: short-term and long-term. When we look at the last ten days or so, the landscape is pretty bleak. In that time frame, the asset went from $1.2 to less than $0.8. Although it has now recovered some ground to $0.9, it is still down 25% since December 12th.

The wider landscape, however, paints a different picture. The price of ADA was in a tight range between $0.3 and $0.4 for weeks before the US presidential election and subsequent promising words from IOG founder Charles Hoskinson.

It later exploded to a new multi-year high of over $1.3, and even now, with its correction to $0.9, it’s still up 160% in less than two months.

The first scenario is more painful at the moment, but when analyzing larger cycles, like the current bull, the second plays a bigger role. Accordingly, crypto analyst Ali Martinez focused on the long-term perspective to determine that the most recent ADA fix could be a blessing in disguise.

He noted that the token has followed a “strangely similar pattern” to the previous cycle in 2020. Then, the asset’s first major pullback after a substantial rally “happened at the same time as the correction we’re experiencing today.”

As such, he believes that ADA could surpass its 2021 ATH of $3.09 (according to CoinGecko) and reach a new peak of $6.

#Cardano $ADA follows an eerily similar pattern to its previous cycle. In 2020, the first major correction after the start of the bull rally happened at the same time as the correction we are experiencing today.

$6 Next! pic.twitter.com/CPrYdQQqyx

— Ali (@ali_charts) December 22, 2024

It’s worth noting that this price would put ADA’s market cap well above $200 billion, making the asset the third-largest, at least as the market sees it today.

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