thecryptobasic.com
A recent analysis has highlighted the possibility of a Cardano rebound, with a new chart setup tipped to spur another round of bullish price action.
Cardano is experiencing a significant dump, similar to most other cryptocurrencies. With Bitcoin falling below $100,000 yesterday for the first time since June, Cardano dropped over 6% to a five-month low of $0.49 before recovering slightly.
The apparent price weakness has now taken ADA’s loss to 17% in the past week and 36% over the last 30 days, raising concerns that the token and the broader cryptocurrency have entered a bear phase.
An accompanying chart indicates that yesterday’s downtrend is propelling Cardano into phase 2, which is a period of price accumulation. The analyst expects this short phase to be marked by short-lived price corrections, but anticipates Cardano will hold the $0.435 price level.
Notably, this aligns with the lower support level of the accumulation box, which is approximately 18% below the current market price of $0.53.
Phase Three to Spark Cardano Rally
Meanwhile, after the accumulation phase, OceanStaker predicts a transition into phase 3, characterized by substantial upsides. The chart indicates that this phase will propel Cardano past the phase 1 high of $1.32 to greater heights.
Specifically, it could take Cardano past the $3 price mark, potentially retesting its 2021 peak and current all-time high of $3.10. This represents a 485% uptick from the current market price.
Notably, other chart components align with this narrative. The commentator noted that the MACD and RSI on the daily chart are in a downward trend, aligning with the prices. A breakout for these indicators alongside the PO3 pattern would further fuel the ADA climb.
Remarkably, “Cardano to $3” has become a common forecast a common prediction among analysts, as they expect a recovery to that level if altcoins enter their next bullish phase. Crypto Deezy is one of the analysts calling this price, citing a breakout from a descending channel. Permabull Dan Gambardello has also predicted that ADA will reach a $3 price.