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Seasoned trader Ali Martinez sees Cardano ($ADA) facing a slight correction following its retest of $0.80, but the analyst expects a recovery toward $10 if history repeats itself.
Cardano has been silently recording a gradual but steady uptick amid the latest market run dominated by meme coins. However, while Bitcoin (BTC) is only 2.83% away from reclaiming its all-time high, $ADA still requires a 304% surge to recover its $ATH of $3.10.
This reality has been a source of concern for Cardano investors, who have bemoaned the crypto asset’s seemingly sluggish growth since the start of the bull run phase. These concerns prevail despite $ADA recording an impressive 23% rise over the past seven days.
Cardano leveraged the latest market push to retest the $0.80 high, facing resistance at $0.7986 yesterday before witnessing a mild drop. Amid this battle with the bears, Ali Martinez recently stressed that $ADA is currently following a similar path to the previous market cycle.
Imminent Mild Correction for Cardano
The analyst identified a particular pattern $ADA followed in an accompanying chart before recording the 2021 bull surge. Notably, Cardano first witnessed a consolidation phase from September 2018 to July 2020, marked by accumulation.
#Cardano seems to be mirroring its previous bullish cycle. If this pattern continues, we could witness a brief correction before $ADA goes parabolic toward $10! pic.twitter.com/6kDxDhxsEg
— Ali (@ali_charts) March 4, 2024
After breaking out of this consolidation in July 2020, $ADA pumped to a high of $0.149 before facing a mild correction that brought it back to the lower spectrum of $0.10 in November 2020. Following the correction, Cardano engineered a massive rally, surging 3,217% to its $ATH above $3 in August 2021.
Martinez’s chart suggests that $ADA is following this same pattern. Interestingly, after collapsing from the $ATH, $ADA found itself in a similar consolidation phase from September 2022 to November 2023. $ADA broke out when it staged a rally last December amid the market-wide upsurge.
This rally has continued until now, with $ADA recently retesting the pre-Terra high of $0.80. However, like in the previous market cycle, Martinez sees Cardano witnessing a mild correction before eventually skyrocketing to $10.
$ADA to $10: How Feasible?
The analyst sets a target surge of 2,084% from $ADA’s low of $0.448 in January 2024, which could propel the token’s price to the $9.7 territory, bordering on the pivotal $10 threshold. Meanwhile, as $ADA changes hands at $0.766, its RSI currently sits at 68, moving toward overbought regions.
The last two times $ADA’s weekly RSI gained momentum to breach the 70 mark, the token faced a correction. Cardano witnessed this pattern in August 2021 following the $ATH and then recently recorded it last December, as it collapsed from a $0.647 high to the $0.448 low in January.