Cardano, going to $4?...Analyst: "$1 break is the trigger"

▲ Cardano (ADA)

Cardano (ADA) is once again attracting market attention with an analysis suggesting the possibility of breaking through $4 after a long-term decline and sideways trend.

According to The Crypto Basic on May 15 (local time), financial analyst Celal Kucuker stated in a post on X (formerly Twitter) that based on Cardano's long-term chart structure, “the move towards $4 looks very clean.” Kucuker evaluated Cardano as one of the “strong star candidates” in the current bull market cycle.

Kucuker's chart analysis focused on Cardano forming a large rounded bottom pattern after years of decline and consolidation. He suggested that if Cardano recovers the key resistance level near $1, the next major target could be at $4.21. At the time of writing, Cardano's price was presented as $0.2678, and a rise to $4 would represent an increase of approximately 1,394%. If this scenario materializes, Cardano would surpass its previous all-time high of $3.10 recorded in September 2021.

Cardano was trading at $0.2678 at the time of writing, up approximately 1.2% over 24 hours, and also showed additional gains over the past week. During the same period, Bitcoin (BTC) rose by about 1.27%, and the total cryptocurrency market capitalization increased by approximately 1.05%. The Crypto Basic reported that Cardano's recent rebound is likely linked to an overall improvement in cryptocurrency market sentiment rather than an independent catalyst.

However, despite its recent gains, Cardano has fallen by about 65% over the past year. Cardano traded above $0.80 before its long-term decline but has since entered a prolonged bearish trend. Analysts believe that a prolonged period of price compression, coupled with improving market conditions, could form the basis for a major breakout.

The accumulation trend of whale wallets has also been presented as a factor raising expectations for Cardano's recovery. According to Santiment, wallets holding more than 1 million ADA currently hold 25.09 billion ADA, which accounts for 67.47% of the circulating supply. This accumulation trend has continued since December 2023, even as Cardano's market value dropped by 71% over the past nine months. Santiment stated, “Cardano's key stakeholders have been slowly but surely accumulating since December 2023, continuously adding more to the existing supply.”

Separately, analyst Ali Martinez analyzed that Cardano might be preparing for a rebound after several months of downward pressure. He suggested that if upward momentum forms, targets could be $0.33 and $0.42, but stressed the need to defend the $0.25 support level to maintain a bullish structure. The Crypto Basic reported that with a combination of technical signals and whale accumulation, market participants are paying attention to early signs of Cardano's recovery.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*