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As altcoin season approaches, Cardano (ADA) is gaining strengthafter registering a rise of more than 14% in the past week, according to CoinMarketCap. Notably, a crypto analyst has identified a strong buy signal for ADA, suggesting it could potentially trigger a price drop parabolic rally that could push Cardano’s price to new all-time highs around $5.
New buy signal from Cardano drives rally to $5
On September 24, crypto analyst TradingShot published a detailed analysis and report on Cardano’s price movements, focusing on key technical indicators to predict its price movements future price of cryptocurrency. According to the analyst, Cardano is currently flashing one of the most powerful long-term bonds buy signals possible on the weekly time frame.
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Based on this strong buy signal and other technical indicators, the crypto analyst predicts that Cardano could start another parabolic rally in the coming weeks. The trend line with higher highs is expected to determine a resistance level ADA price movementspotentially catalyzing a rise to $5.
Highlighting these technical indicators, TradingShot revealed that Cardano’s 1W Logarithmic Moving Average Convergence Divergence (LMACD) is finally forming a bullish cross. In the case of Cardano, this bullish cross is the first since October 9, 2023 and currently signals a strong buy signal that push ADA towards an uptrend.
Moving on, Cardano’s Relative Strength Index (RSI), a momentum indicator that measures the speed and change of asset price movements, has been ‘ranging’ since May 2024. This means that the cryptocurrency was trading below the 1W50 period. Average (MA50) on the weekly chart.
Based on these key technical indicators, TradingShot has drawn a parallel between the previous crypto bull cycle and Cardano’s recent price movements. He observed that ADA’s current market conditions were almost the same as during the 2021 bull cycle. At that time, a bullish megaphone appeared on a 1W LMACD bullish cross, followed by a bottom formation caused by a 1W MA50/MA100 bullish cross while the 1W RSI was in a consolidation phase.
As a result, the analyst has suggested that these recurring technical indicators were a signal that Cardano may be gearing up for one huge price rally. He boldly predicted that the ADA would rise from its current price of $0.38 to $5, marking the next top of this bull cycle.
Analyst Says “ADA Will Hit $1 Before Christmas”
Unlike the ambitious $5 price prediction for ADAanother crypto analyst, identified as ‘Deezy.eth’ on X (formerly Twitter), has done so offered a more conservative view of the cryptocurrency. Deezy.eth predicts that Cardano will reach $1 before December 25, 2024.
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The analyst has based his optimistic projections on several factors he takes into account bullish propellants for CardanoThis includes the weekly bullish divergence of the ADA, the start of rate cuts after four years, the recent launch of the Cardano Chang hard fork and the diminished appeal of ADA’s “low float and high FDV.”
Featured image created with Dall.E, chart from Tradingview.com