analysts, ISLANDHe expects Cardano to recover from the price drop once the consolidation phase in ‘s price trend is over. Because historically, Cardano (ADA) The price saw huge gains at the end of most consolidation phases.
The majority of Cardano is held by retail investors, making it more decentralized than many other altcoins. Analysts predict that the increased adoption and use cases of ADA will accelerate the altcoin’s recovery from the consolidation phase.
Cardano Price On Its Way To Rally 100%
Cardano’s price has been falling steadily for the past two weeks. In fact, ADA’s main competitor, Solana, performed very well and displaced ADA in terms of market cap, a move that no one expected. Cardano has lost its place among the top five cryptocurrencies by market capitalization at the time of writing.
Despite the recent partnerships with Cardano and the news of the increase in the number of projects being built in the ADA ecosystem, the price was not affected by the developments and the price of the altcoin continued to decline.
Analysts have found that this is a trend, and almost every time the Ethereum killer experiences an increase of 100 to 160 percent after these correction periods. Based on the historical trend of the current rally, the next price target for ADA is thought to be around $4 to $5.
@cryptobadger, a cryptocurrency analyst, believes:
“…long consolidation periods are actually quite typical for ADA. As you can see in the charts, we experienced similar patterns around November-December 2020, again in January 2021, and then from late February to late April. Each of these consolidation phases was 4 to 8 weeks long.”
Since the successful implementation of the Alonzo hard fork, Cardano has powered decentralized finance projects. The most successful projects among them, SundaeSwap (decentralized exchange), DeFi protocol Meld, and browser extensions for decentralized applications such as Yoroi have driven ADA adoption and increased on-chain efficiency.
Evaluating the ADA price trend, FXStreet analysts also support the recurring trend narrative and altcoinHe claims that ‘s will experience a big pump after nine weeks of consolidation.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.