Cardano (ADA) has caught the attention of analysts, with Ali Charts suggesting that the token could be on the verge of another price movement. Drawing comparisons to its past cycles, Ali’s technical analysis highlights ADA’s recovery after the COVID-19 market crash and the bullish runs that followed.
Currently trading at $1.07 as of Jan. 3, 2025, ADA has seen a noticeable uptick, drawing the interest of investors and market watchers. This surge has led to speculation that Cardano might be gearing up for a potential move toward $4, with many eyes now on the market for signs of further growth.
Historical price patterns and cyclical behavior of Cardano
ADA’s price history shows clear patterns of explosive growth followed by consolidation. A notable example is its rally from late 2020 to early 2021. When ADA saw a staggering 4,000% increase, rising from $0.02 to $3.08.
This spike came after the market crash due to COVID-19, showing how ADA, like many cryptocurrencies, experienced a strong recovery once market conditions stabilized. More recently, between mid-2023 and early 2024, ADA experienced another bullish trend. Though the gains were more modest, rising approximately 220%.
These historical movements highlight ADA’s cyclical nature, with price surges following periods of consolidation. As ADA continues its upward trajectory in early 2025, these patterns suggest that further gains could be on the horizon. Especially if the price maintains its current momentum.
The current surge and market indicators
As of Jan. 3, 2025, ADA has surged 12.40% in just 24 hours, reaching a price of $1.07. This price increase comes alongside a rise in trading volume, which jumped by 29.35%, hitting $1.96 billion. The surge in volume points to growing investor interest and confidence in ADA, further supported by its market capitalization of $37.68 billion.
The current market indicators point to a higher and more consistent bullish line, where the ADA price follows the upward trend line on the charts. This would also mean that the trading volume and Market cap have gobbled up a good section of the ADA space, and thereby, we see a lot of upside for it.
Technical indicators suggest further upside
With technical analysis, ADA has the price ladder of RSI and MACD on the bullish side. The Relative Strength Index is likewise still at 81.56 which is a standard signal that ADA is at an overbought point.
This could indicate some near-term pullback or consolidation, but the MACD line above the signal line is highly bullish.
If this trend continues, ADA will soon retest resistance around $1.10 and move higher. To determine this, investors and traders must pay close attention to these indicators. Especially the RSI, to determine whether the current bullish run could continue uninterrupted or needs to be corrected at some point.
