Aaryamann Shrivastava
FXStreet
- Cardano price reached its ATH back in August 2021 and would need another 925% increase to breach it.
- Peter Brandt suggests that while the Bitcoin bottom is in, new ATHs should not be expected until Q3 2024.
- ADA still has some bullish steam left in it following the 17% rally this week, which could enable it to breach the 200-day EMA.
Cardano price has been moving in line with the rest of the crypto market, rising considerably in the past couple of days. But this increase is infinitesimal in comparison to what is needed for ADA to see new highs. However, according to Peter Brandt, this could happen by late next year.
Cardano price could see more green
Cardano price in the past week has risen by 16.9% to trade at $0.284 at the time of writing. This increase has pushed the token through some crucial barriers, such as the 50 and 100-day Exponential Moving Averages (EMA). The altcoin is now aiming to flip the $0.298 resistance level into a support floor, which is in confluence with the 200-day EMA.
Looking at the Directional Movement Index (DMI) and Average Directional Index (ADX), one can detect the trend direction and the strength of the active trend, respectively. Given that +DI (blue) is maintaining its position over -DI (orange), the trend remains bullish until the latter crosses over the former.
ADX can also be seen breaching the 25.0 threshold. Whenever the indicator rises above this point, the active trend is considered to be gaining strength. Thus, Cardano price has a shot at reclaiming $0.298 and heading toward $0.300 in the near future.
ADA/USD 1-day chart
However, a failed breach could send it back toward the 100-day EMa at $0.270. Losing this level would invalidate the bullish thesis and pull it down to 2023 low of $0.241.
Cardano may reach for the skies…in Q3 2024
According to popular trader Peter Brandt, the new all-time highs for cryptocurrencies would not be coming anytime soon. Brandt tweeted that he believes that the Bitcoin bottom is in and that not until Q3 2024 should the market sees new ATHs.
Anyone who declares they know the future path of any market is a fool. Markets will ALWAYS surprise.
— Peter Brandt (@PeterLBrandt) October 25, 2023
Yet, with this disclaimer, I believe:
1. The $BTC bottom is in
2. New ATHs not coming until Q3 2024
3. Chop fest in the meanwhile
I've used this blueprint for approx 2 years pic.twitter.com/hVt0zbTOsm
Since Cardano closely follows Bitcoin’s cues, and given that the blockchain has not seen any major network development, it would also have to wait until Q3 next year to breach the $2.913 mark. This all-time high was created in August 2021, and Cardano price would need to chart a 925% rally to make this happen.
ADA/USD 1-week chart
Put simply, such a far-fetched rise in such limited time would only happen when the bull market is in full swing, the hopes of which are resting on the potential spot Bitcoin ETF approvals and the Bitcoin halving scheduled for next year.
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