Cardano consolidation phase to end with explosive 100% price move
- Historically Cardano’s consolidation phases have lasted from 4 to 8 weeks and ended in a 100 to 160% rally in ADA price.
- Majority of Cardano is held by retail traders, making it more decentralized than most other altcoins.
- Cardano lost its position as the fifth-largest cryptocurrency by market capitalization to Solana, dropping out of the top 5.
- Analysts expect ADA’s rising adoption and utility to fuel the altcoin’s recovery from the consolidation phase.
Analysts expect Cardano to recover from the drop in price as the consolidation phase in ADA price trend comes to an end. Historically, ADA price has posted a massive rally at the end of most consolidation phases.
Cardano price on track for 100% price rally
Cardano price has dropped consistently over the past two weeks. Solana, Cardano’s key competitor, flipped ADA in market capitalization. Cardano has now dropped out of the top five cryptocurrencies by market cap.
Despite news of Cardano’s recent partnerships and a rise in the number of projects building in the ADA ecosystem, the altcoin’s price has plummeted. Analysts have noted that this is a trend, and nearly each time, the Ethereum-killer has posted 100% to 160%. ADA price target could be $4-$5 based on the historical trend in the ongoing rally.
@cryptobadger, a cryptocurrency analyst, believes that,
...long consolidation phases are in fact very typical for ADA. As you can see on the chart below, we had similar patterns around November-December 2020, again in January 2021 and then from late February to late April. Each of these consolidation phases was between 4 and 8 weeks longs.
Since the successful implementation of the Alonzo hard fork, Cardano has powered projects in decentralized finance. Top projects SundaeSwap (decentralized exchange), DeFi protocol Meld and browser extensions for decentralized applications, like Yoroi, have fueled ADA’s adoption and rising on-chain activity.
FXStreet analysts have evaluated the ADA price trend and predicted that the altcoin has a massive pump ahead after nine weeks of consolidation.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
