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Cardano (ADA) completed its first green September in six years, while the currency gained almost 8%. This is important because the crypto could experience a prolonged rally in October, which could lead to more price gains for Cardano.
Cardano records first Green September
Cryptorank data shows that Cardano has recorded its first Green September since its launch in 2017. This raises the possibility of the crypto experiencing an extended rally as it provides a bullish outlook for ADA. Crypto analyst Plutus also suggested that Cardano could replicate Bitcoin’s monthly return after the first green September.
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He added that the crypto could achieve these positive monthly returns in the coming months as looser monetary policy begins to take place. Cardano mimicking Bitcoin’s historic monthly returns in the last quarter of this year will be huge for the coin as this is when the flagship crypto posts its most profitable returns.
Specifically, October is historically one of the best months for Bitcoin, as the crypto has posted only two negative monthly returns since 2013. Most of the wins were also double digits. Therefore, October could be huge for Cardano if it repeats The monthly return of BTC.
Although October has historically not been a good month for Cardano, this time it is very different monetary easing policy with a bullish outlook for the crypto market. The US Fed’s interest rate cuts and China’s stimulus package were among the factors that helped ADA enjoy a monthly green candle in September. As such, the crypto could see an extended rally as this monetary easing policy continues to roll out.
It is also worth noting that the fourth quarter of 2023 was very bullish Cardano as it posted double-digit gains in October, November and December. Similar price increases in this fourth quarter will see ADA regain $1 and set a new annual high in the process. This will give the coin a much-needed boost as it is seeing a year-to-date (YTD) loss of almost 40%.
Other factors supporting an extended rally
From a technical perspective, Plutus noted that the current Heikin Ashi monthly candle is green, indicating a change in direction on the maps. The analyst also revealed that the Weekly Gauss channel, which turned bullish in February, is still green, indicating that more impulsive moves to the upside are in store for the future. Cardano.
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Cardano’s fundamentals are also bullish. Being ahead of the testnet privacy protocol Midnight Network recently went live. This privacy solution will help developers build decentralized applications that ensure users’ data is well protected, a move that could attract more users to the network. The network is already one of the most decentralized and is moving to the Voltaire erathat focuses on community-driven governance.
At the time of writing, Cardano is trading around $0.35, down more than 6% in the last 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com