IMPORTANT POINTS:
- Cardano is experiencing a long consolidation phase similar to 2018-2020.
- Expert Ali Martinez foresees two possible scenarios: a consolidation until 2024 or a burst in December.
- Despite bearish indicators, there are signs that suggest a possible “break out” soon.
Cardano ( ADA) is going through one of the longest consolidation phases in its history. This current phase bears similarities to the consolidation that Cardano experienced between 2018 and 2020, prior to the euphoric bull market of 2021.
Analysis from a crypto expert
Ali Martinez, expert cryptocurrency trader, shed light on this consolidation trend on October 12. According to him, the future of Cardano presents two possible scenarios:
“If history repeats itself, ADA could remain in this consolidation phase until July 2024. However, excluding unforeseen events such as the COVID-19 crash, ADA could break the consolidation as early as December!”Ali Martinez (@ali_charts on X)
It is important to remember that Cardano’s consolidation range between 2018 and 2020 lasted 95 weeks, recording a total volume of 88.218 million ADA. On the other hand, the current trend is only in its 62nd week with a significantly lower volume of 5.025 million ADA. This volume is 17 times less than the previous cycle at a third of its duration.
What the numbers say about ADA
At the time of writing, ADA is trading at $0.24, with a slight intraday loss of 0.76%. Considering the consolidation phase mentioned by Ali Martinez, Cardano has been trading as high as $0.45 per token, placing it at the lower end of the range. Furthermore, ADA has lost about 37% of its value year over year, starting from $0.38 12 months ago.
Technically, ADA is below its 200-day simple moving average, which usually indicates bearish sentiment.
Despite the consolidation phase and certain technical indicators, there are multiple signals that point to a good foundation for a possible “break out” of the current range. Standing out among them, Cardano surpassed all crypto projects in developer activity in September.
