- ADA could repeat history by breaking out around December and rallying in July 2024.
- Bulls have failed to break the bearish market structure as ADA risked falling from $0.246
- Alongside ADA, the value of SOL and other cryptocurrencies in the top 20 fell in the last 24 hours.
According to on-chain analyst and trader Ali Martinez, Cardano (ADA) could remain in the consolidation phase till July 2024. The analyst, who posted this prediction on X (formerly Twitter), noted that ADA’s current condition was similar to the 2018-2020 scenario.
Bullish In the Long Term
From the chart shared by Martinez, ADA experienced a severe downtrend for most of 2018. By the second quarter of 2019, the token broke out and went on a long rally. Currently, ADA exchanged hands at $0.246.
But in the last 90 days, the cryptocurrency price has decreased by 26.75% while trading between $0.246 and $0.520. However, the last 30 days have been a little bit calm for the Charles Hoskinson-founded token.
Furthermore, Martinez mentioned that ADA could break out in December this year, and the reward of the push might only be reflected in the second half of 2024. Interestingly, Martinez seemed very bullish on ADA’s long-term price action, indicating that it could rise as high as $4 between 2024 and 2025.
ADA Risks Another Decline
In the short term, the technical outlook showed that the analyst may be right. According to the 4-hour ADA/USD chart, bulls have been trying to break the bearish market structure all to no avail.
On October 12, ADA had formed support at $0.244, and this was responsible for pushing up the price to $0.247. Indications from the Stochastic RSI showed that ADA may drop further from its current price.
At press time, the variable %K (blue) was 91.75 while the variable %D (orange) was 83.12. As an indicator for measuring momentum, and identifying overbought or oversold conditions, the Stoch RSI showed that ADA was overbought, and another decline could be on the cards.
This sentiment was also reinforced by the Moving Average Convergence Divergence (MACD). At the time of writing, the MACD was in a neutral position. However, the fact that the 12 and 26 EMAs were negative suggests that selling pressure is still outweighing the buying momentum.
In another development, Cardano’s founder Charles Hoskinson exchanged words with an X user who tried to call ADA a “big loser” price action and elevate Solana’s (SOL). However, Hoskinson responded by saying that SOL’s performance in the last 24 hours has been worse than ADA’s. He added that ADA and SOL were not the only cryptocurrencies with underwhelming performances, noting that most assets in the top 20 had similar trends.
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