Popular cryptocurrency analyst Ali Martinez has recently pointed out that the price of smart contract platform Cardano ($ADA) could soon surge over 2,900% if history is to repeat itself, as previous periods of relative stability for the token have been followed by huge price explosions.
In a post Ali shared on the microblogging platform X (formerly known as Twitter), he observed that the price of Cardano’s native token ADA traded between $0.10 and $0.028 for 665 days between 2018 and 2020, before seeing a 2,985% price surge after taking off from the long accumulation phase.
Drawing parallels from that time, Martinez noted that DA now “seems trapped in the $0.46 to $0.24 range” for 329 days now. He noted that if history and price action can be indicators, it’s possible ADA will break out around February 2024.
Cardano’s ADA is currently trading at $0.289 per token, and if history is to repeat itself and the token’s price does surge 2,900% it will be trading near the $9 mark after the bull run ends. Notably, ADA sharks and whales may be expecting such a surge, as on-chain data shows their wallet numbers have been growing.
According to on-chain analytics firm Santiment, there are now 25,294 wallets with over 100,000 ADA tokens in them, the most in 16 months, even at a time in which sentiment remains low.
As CryptoGlobe reported, the total value locked on Cardano’s decentralized finance (DeFi) ecosystem has recently reached a new milestone above the 600 million ADA mark, with the amount of the network’s native tokens locked on DeFi applications having tripled since the beginning of the year.
Interest from Cardano whales and sharks seemingly coincides with growing on-chain activity on the network, as Santiment pointed out that transaction volume on the network has been “rising nearly every week for the past 6 months.”
Per the firm, there have been back-to-back weeks with “over 67 billion in ADA transaction volume,” the highest level since September 2021.
Featured image via Unsplash.
