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Cardano Rally Gains Steam: Analysts Predict $10 to $40 Scenarios for ADA
The cryptocurrency market is witnessing a surge in activity, with Cardano (ADA) being one of the beneficiaries. After gaining 25% in the past week, the token has caught the attention of analysts who are predicting possible scenarios that could see it reach as high as $10 or even $40.
According to Tony Afternoon, a crypto analyst, Cardano is forming a textbook double-bottom pattern, which often precedes significant breakouts. The current price action aligns with this development, and a clean break above the $0.76 mark could lead to a run towards the $1 level.
Furthermore, data from DeFi Llama indicates that the total value locked (TVL) on the platform has jumped by 50% in just seven days, now reaching $336 million. This significant increase in investor confidence and inflows into ADA-linked decentralized finance is seen as a strong sign of rising support for the token.
Gert van Lagen, another market expert, has outlined two potential bullish continuation scenarios on ADA’s monthly chart. In the first scenario, the token could rise within a wedge structure, targeting $10 in the final wave. This outcome implies steady growth with potential resistance near the top of the pattern.
The second and more aggressive scenario foresees Cardano entering the third wave of a larger momentum move, pushing its price as high as $40. van Lagen supports this view by pointing to a hidden bullish divergence on the Relative Strength Index (RSI), suggesting strength beneath the surface.
The rally has not yet broken critical resistance, and ADA must stay above $0.50 to keep the bullish sentiment intact. A fall below $0.22 would invalidate both long-term bullish patterns according to van Lagen’s analysis.
Short-term price action remains favorable with Cardano now up 22.94% in a week. Data from CoinGecko shows that the token has attracted strong interest, as its daily trading volume surpassed $1.1 billion over the past 24 hours.
It is worth noting that the rise in ADA is not driven by speculation alone but also fueled by real-world utility. The recent introduction of a crypto-linked payment card, which allows for day-to-day use, strengthens the case for continued growth as demand extends beyond trading.
As price, utility, and investor interest align, Cardano may be positioning for another leg higher. However, traders will closely monitor a move past $0.76 to validate their bullish expectations.
Source: blockonomi.com
