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Analysts are gaining exposure to Cardano at the current price level, as a bullish chart setup suggests an impulsive uptrend is imminent.
Prominent market watcher Captain Faibik is among those predicting that Cardano could reach new heights from here, despite its lackluster price trend. He shared this in his recent Cardano price prediction, citing a trendline breakout.
Buy Some ADA Here
Notably, Cardano has failed to trend higher as most prominent cryptocurrencies have in the past 24 hours. Bitcoin and Solana have increased 2% and 4.30% in the past day, with most other assets in the top 10 crypto market cap ranking also posting slight gains. However, ADA has corrected 2.43% in the same timeframe.
The move summarizes ADA’s recent price action, as it has continued to struggle under the current market conditions. CoinMarketCap data shows it has declined 3.7% in the past seven days and 25% in the last month.
Nonetheless, Captain Faibik sees this as a great buy opportunity for Cardano. In his latest analysis, he confirmed that he is buying some ADA here, suggesting that things could escalate quickly for the blue-chip asset soon.
Cardano Retests Trendline After Breakout
Meanwhile, his bullish outlook stems from an expectation of a sustained trendline breakout for Cardano in the near term. An accompanying chart identifies that ADA trends near the neckline resistance of a multi-month trendline at the time of his analysis.
The supply trendline began forming at the $0.882 high on October 6 and has since suppressed Cardano’s price. In the course of its downtrend, ADA has attempted to break above the slope but has met with notable rejections.
However, Cardano showed strength, breaking above the neckline resistance on December 9 when it rallied to a high of $0.484. This breakout occurred shortly after Faibik’s analysis. Following the breakout is the current retest of the trendline, with ADA pulling back to $0.423 at the time of writing.
Breakout Targets $0.70
Remarkably, a sustained breakout will likely spark bullish price action for Cardano if the broader market remains stable. Captain Faibik shares this sentiment, highlighting the possible target if the asset successfully retests this resistance trendline.
His chart shows a possible climb to the $0.70 price range, reclaiming levels last seen in late October. From its current price of $0.423, this represents a 65.5% increase.
Notably, this aligns with an analysis from top chartist Ali Martinez. He shared in a November market outlook that ADA would target a rally towards $0.70 if it holds crucial support around $0.50.