Cardano (ADA) has been stuck in an accumulation zone for a few months now and has not seen the kind of run-up that other major cryptocurrencies have experienced. This continued accumulation and trading within a very tight range could mean a very significant breakout when it finally happens, and one crypto analyst has predicted an incredible surge along these lines.
Cardano could see an increase of 16,500%
Tim Warren, one of the hosts of the Investing Broz show on Discord, took to X (formerly Twitter) to share a rather bullish Cardano chart. In the chart, Warren points out Cardano’s past price performance, which has been nothing short of phenomenal.
As the chart shows, the ADA price was down about 98% from its previous all-time high in 2018. In 2020, the ADA price was at a low of $0.018, but the impending reversal could shake the entire market to surprise. . ADA would rise a total of 16,500% by the time it reaches its new all-time high of $3.10 in 2021.
Chart shows 16,500% ADA rally | Source: X
Applying this historical performance to ADA’s current price level could indicate such a rally. Cardano’s price is currently about 92% below its all-time high, putting it close to the same level as 2020.
If ADA holds on to this historical performance and repeats, a 16,500% increase from the current price level would put the digital asset’s price at its peak at $40.
ADA continues to trade in a tight range | Source: ADAUSD on Tradingview.com
ADA’s value proposition
In response to Warren’s post, another X user, Chris O, echoes the digital asset’s value proposition. Chris, the founder of Ghost Fund DAO, a protocol on Cardano, explained that ADA’s previous 16,500% increase had occurred without support for smart contracts and decentralized finance (DeFi), among others. But now that the network is supporting it, the founder thinks it could cause a big uptick.
Chris points out the presence of DeFi, a rising Total Value Locked (TVL), non-fungible tokens (NFTs)And side chains which now feature prominently on the network. He also points out the different protocols that have been launched on the network in these different sectors.
#Cardano fam, simple graph showing FUTURE opportunities. Without SC, CNTs, Defi, $ADA did 165x from the bottom of the bear.
Now with SC, Defi/booming TVL, NFTs, projects like @boek_io, @CornucopiaGame, @Indigo_protocol, @IagonOfficialetc…, along with Hydra, Marlowe, Mithril,… https://t.co/EChPO0SSLH
— Chris O (@TheOCcryptobro) October 14, 2023
As Chris notes, ADA had done a “165x from bear bottom” without Cardano having support for all the sectors mentioned above. So he believes that “A 25x – 40x is a very reasonable expectation. Drown out the noise.”
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Chris called Warren’s chart a “simple chart showing FUTURE opportunities.” However, if ADA were to repeat its 2020-2021 rally, a 40x would be just the beginning for the digital asset.
