According to the analysts of the Discover Crypto YouTube channel (with 1.4 million subscribers), Cardano could rise to $5. This prediction stands in stark contrast to the pessimistic views currently circulating within the broader cryptocurrency community, challenging recent headlines questioning the future viability of ADA.
Why Cardano was able to hit $5
The analyst first addressed the negative sentiment around Cardano, pointing to a series of bearish headlines from various crypto news outlets. He highlighted the contradiction between the public perception of Cardano as a ‘dead currency’ and the ongoing strong development activities within the Cardano ecosystem.
“Despite what the mainstream media portrays, development activity on Cardano has been robust and ranks third among all cryptocurrencies,” the analyst said. This was further highlighted by recent data showing that developers continue to build and refine the platform, indicating a healthy and active development environment.
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The analyst focused on the upcoming Chang hard fork, describing this event as a pivotal moment for Cardano. “The Chang hard fork represents the most important milestone in Cardano history,” he noted. He added: “There may be items trying to suppress the price just before the price goes parabolic and possibly even rises $5 this cycle.”
From a technical analysis perspective, the analyst introduced the ‘breaker block pattern’, a less common but notable technical chart pattern often used by traders. The breaker block pattern occurs when a corrective price block is completely retracted after a strong directional market move.
This pattern is considered bullish because it typically indicates that the original bullish trend has regained strength after a period of price consolidation or correction and is likely to continue. “We are observing a classic break block formation in the ADA chart, which historically precedes significant price increases,” the analyst explains.
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In conjunction with this pattern, the analyst pointed out a promising stochastic RSI crossover on the monthly chart – a technical indicator often used to predict changes in momentum. “The stochastic RSI is about to cross the line, and this has historically been a very bullish sign. When this blue line crosses the orange line, earlier rallies emerge, which we can clearly see if we look back at the charts,” the analyst explains.
The discussion also extended to market dynamics, specifically the order book data for ADA, which showed the dominance of buy orders over sell orders. “A look at the order book reveals a significant bias towards buying rather than selling, indicating a strong market consensus leaning towards a bullish trajectory for ADA,” he noted.
In conclusion, the analyst urged viewers to look beyond the negative headlines and focus on the substantial fundamental improvements and strong technical indicators that support the bullish outlook for Cardano. “Ignore the detractors and the negative press. The data, developments and technical indicators all point to the ADA being poised for significant upward movement, potentially reaching $5 in this cycle,” he concluded.
At the time of writing, ADA was trading at $0.3379.
Featured image from Shutterstock, chart from TradingView.com
