The native token of the Cardano blockchain, ADA, has lost around 35% of its value so far this year and is now trading below the $0.4 mark at $0.38, but according to a cryptocurrency analyst the cryptocurrency could soon start surging to hit the $5 mark, which would represent a rise of over 1,200%.
According to cryptocurrency trader ‘TradingShot’ on TradingView, Cardano has just flashed the “strongest buy signal in 1 year,” with the formation of a bullish cross on the one-week Logarithmic Moving Average Convergence Divergence (1W LMACD).
This marks the first time this bullish pattern has appeared since October 2023, indicating a significant shift in momentum. Furthermore, the trader noted that ADA has been consolidating below its 50-week moving average since May, a potential precursor to a breakout.
The analyst highlighted that ADA’s current conditions, which also include its 1-week Relative Strength Index (RSI) ranging since May, are “identical to the previous Bull Cycle, where a Bullish Megaphone emerged on a 1W LMACD Bullish Cross and after a 1W MA50/ MA100 Bullish Cross, the bottom was formed, while the 1W RSI was consolidating.”
The trader’s interpretation of the chart could mean that Cardano’s price could soon start a new parabolic rally to hit the $5 mark at the top of the cycle.
As CryptoGlobe reported, popular cryptocurrency analyst Dan Gambardello, has recently suggested that the price of ADA could rally over 1,000% against the flagship cryptocurrency Bitcoin based on an “insane bullish divergence.” Per the analyst, the last time such a divergence was seen ADA rallied 1,000% against BTC, four years ago.
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