‘Monster Rally’ Ahead? Analyst Predicts Cardano (ADA) Surge

• Ali Martinez has predicted that ADA will see a “monster parabolic rally” in the near future. 
• Martinez highlighted a fractal pattern that the altcoin had formed in 2021 resulting in massive gains.
• Vortex co-founder Gleb confirmed that whales’ confidence in the ADA token is waning.

ADA could be looking at significant gains in the near future, according to crypto analyst Ali Martinez. ADA faces a strong resistance towards the $1 price level, but Martinez claims the cryptocurrency is due for a “monster parabolic rally.” 

In a post on X (formerly Twitter), Martinez posted a chart for the ADA price action, highlighting that the cryptocurrency is forming patterns similar to the 2021 crypto market bull run. The analyst showed a fractal pattern in the chart where ADA previously consolidated within a range before exploding in 2021. A similar accumulation phase appears to have formed recently, marked by a breakout from a key resistance level.

The shaded regions and the black arrow emphasize the similarity between past and present price structures. If history repeats itself, ADA could be on the verge of a strong upward move, potentially leading to significant price appreciation. This is because past market cycles often influence future trends in technical analysis. 

Whale Activity: A Bearish Sign?

On the flip side, there are certain bearish indicators for the ADA price action to consider. While the altcoin remains in the top 10, ADA’s whales have pulled back, with netflow dropping by 90% in just a week. The co-founder of algorithmic market maker Vortex, Gleb, said on X that when large holders who own 0.1%+ of the supply of a cryptocurrency start reducing their activity, “it signals waning confidence.” 

Related: Charles Hoskinson’s Encrypted Statement: What Is Cardano Up To?

Gleb explained that reduced activity means fewer transactions, which in turn means lower liquidity and higher volatility. The entrepreneur believes that If this keeps up, “ADA’s price could face some serious pressure.” 

ADA Price Analysis: Mixed Signals

The ADA price chart below shows that the price action of the digital asset entered the oversold region but rebounded swiftly, reading a value of 33.16 at press time. The gradient of the line suggests a slight surge in buying pressure and increased chances of an attempt to break $1.

Related: Cardano Transitions to Full Decentralized Governance – ADA On the Rise?

The price action of ADA has dropped to the lower end of the Bollinger Bands and broke below the lower trendline of the Bands a few days ago. However, the lower trendline still holds as support for the altcoin.