When it comes to Cardano (ADA), this year is shaping up to be nothing short of “massive,” according to a crypto analyst. By examining historical data, the analyst suggests that ADA has the potential to replicate the impressive run it experienced in the past, where it saw a staggering gain of 8,288% following a period of consolidation spanning approximately two years.
Previously, ADA launched during the peak of the 2018 bull market but failed to make significant gains until two years later. It is interesting to note that ADA initially dropped below the $0.11 support level just months after its launch, remaining within that range from August 2018 to June 2020. However, the tide turned for the crypto token, and it surged by a remarkable 8,288%, reaching an all-time high of $3 in 2021.
Based on this historical pattern, the analyst advises ADA investors to exercise patience, as a breakout could be imminent, leading to a potentially parabolic move. He cautions against repeating the regretful mistake made by those who failed to hold ADA when it was at its lowest. Those who held onto their ADA during that period saw their investments soar into the millions.
At present, ADA is encountering resistance at the 78.6 Fibonacci retracement level, which typically marks the end of the bear market cycle. The analyst observes that breaking through this level proves challenging due to substantial selling pressure and an insufficient demand for ADA. Drawing on past market cycles, he expects explosive movements to occur around May or June. However, he also believes that Cardano could achieve the Fibonacci level before these months. Nevertheless, substantial moves may not materialize until at least May.
This situation presents a unique opportunity for investors to accumulate ADA tokens. The analyst emphasizes the importance of taking advantage of this moment, as there might be further consolidation or a “shake-off” before the Bitcoin Halving. By accumulating ADA now, investors position themselves favorably for the potentially fruitful times ahead.
The most exciting periods of the year, predicting significant market developments, are expected to unfold during the third and fourth quarters. Notably, this analysis focuses on personal profit-taking strategies, hinting at considerable opportunities for sizable gains.
Moreover, the crypto analyst anticipates that this bull market cycle could be the largest in history. He believes that a Spot Exchange-Traded Fund (ETF) may be on the horizon for various cryptocurrencies, including Cardano.
As of now, ADA is trading around $0.532, experiencing a slight decline over the last 24 hours, based on data obtained from CoinMarketCap. It is crucial to emphasize that this article’s intention is solely educational and not reflective of NewsBTC’s opinions on investment decisions. Investing should be approached with caution and thorough personal research.
Cardano (ADA) has the potential for significant growth in 2022, drawing insights from historical data and market analysis. Patient investors who carefully accumulate ADA during this period may reap substantial rewards in the future. With the anticipation of momentous developments and the possibility of a historical bull market, Cardano (ADA) is poised to make its mark in the cryptocurrency space this year.