Cardano Approaches Conclusion of 2020-Style Correction: Could $5 to $10 Be Next?

Cardano (ADA) may be nearing the end of an extensive corrective phase that mirrors a similar situation from 2020. According to crypto analyst Quantum Ascend, there are signs in the market indicating the potential for a new breakout, similar to previous patterns seen in ADA’s price behavior.

Key Takeaways

Similar Patterns: The current market situation for Cardano strongly resembles its 2020 corrective phase.
Potential Price Targets: Quantum Ascend outlines target prices of $5 and $10 for ADA after completing a specific price structure.
Market Indicators: Technical indicators suggest a shift in momentum, hinting at a possible upward move.
Long-Term Outlook: The analyst believes that Cardano has significant upside potential, despite not holding any at the moment.

Cardano price news

Cardano’s 2020 Fractal Resurfaces

In a recent video posted on January 7th on the platform X, Quantum Ascend analyzed Cardano’s weekly chart through a broader corrective framework involving multiple stages. He outlined a pattern of corrections labeled A, B, C, D, and currently waiting for E. This positions the current state of ADA as the final stage of a longer consolidation phase rather than a new downtrend.

Cardano price analysis

The "E" phase is crucial in this analysis as it signifies the last part of a wedge-like pattern. Quantum Ascend pointed to an upper trendline and Fibonacci levels, referring back to previous analyses to support his price targets once this structure is completed. He stated: "Essentially you have an upper trendline, and some Fibonacci support, I predict a conservative target of $5, with a primary target of $10." He anticipates that following this surge, the broader crypto market might face challenges.

The core argument centered on the resemblance of the current phase to a previous correction experienced by Cardano. Quantum Ascend compared historical price movements to demonstrate how current behavior mirrors that of past cycles: a rise to comparable levels, a subsequent pullback, and another push toward resistance, confirming previous patterns.

He explained that the earlier correction forced ADA to establish a lower trendline before embarking on its next growth phase. "This is the same exact move that Cardano had to come down to set the lower trendline," he noted, adding context by referencing the remarkable gains from a previous substantial rally, which saw ADA rise by 170 times in value.

Indicators and Market Momentum

Discussing the potential for a target of $10, Quantum Ascend asserted that such valuations are not unprecedented within the context of past altcoin cycles. "The jump from current levels to $10 represents a 22-25X increase," he said, recalling how a past alt season saw a notable increase of 21 times.

He highlighted early signs of a changing momentum with the weekly Relative Strength Index (RSI) beginning to rise after a prolonged period at low levels. "We’ve been near our lows since late October, and now we’re starting to see some movement," he remarked. He emphasized that substantial market movements often occur when the weekly RSI transitions from low to high, signifying a reversal.

Quantum Ascend wrapped up his thoughts by expressing strong belief in Cardano’s future, despite currently not holding any. "I believe this project has massive upside potential," he concluded, illustrating his confidence in future developments.

As of the latest update, ADA is trading at $0.3925.

Cardano price chart