• 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. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP