History looks to be repeating itself in the Cardano (ADA) market, as a key bullish indicator could mark the start of the next parabolic price rally. According to crypto analyst-cum-trader Ali Martinez, ADA might go to as high as $7 as its new bull cycle plays out.
ADA Price Charting A Previous Bull Pattern
For the first time in over a week, Cardano ADA’s bulls are back in a commanding position in the market as the price entered positive territory today. At the time of publication, data from CoinGecko shows ADA is changing hands for $0.49, down 4.6% in the past 24 hours.
Amid lackluster market-wide performance, ADA’s fate now hangs in the balance, and the catalyst for growth lies in its historical trends.
As per trader Ali Martinez, the token is presently in a consolidation period on its three-day chart. As it turns out, ADA’s current consolidation phase is very similar to that witnessed in 2020 before its more than 2,900% bull run from around $0.10 to a lifetime high of approximately $3.09.
Martinez theorized that a repeated market structure could see ADA resume its bullish uptrend in April. The continuation of this pattern could potentially send ADA price flying, with a primary upside target at 80 cents. He, however, expects a momentary pullback to $0.60 before a rally to the coveted $7 mark.
Cardano’s price had been suppressed after the U.S. Securities and Exchange Commission (SEC) lodged complaints against Binance and Coinbase in June 2023, alleging that they were operating as unregistered brokers and dealers. Each suit particularly calls Cardano a security, along with a bunch of other altcoins. However, this narrative just didn’t hold water, and U.S. Senator Cynthia Lummis even called out the SEC in November, saying the regulator cannot continue to rule by enforcement.
Cardano Overtakes Ethereum In Whale Transactions
Notably, Cardano has recently eclipsed ether (ETH) in whale transaction volumes. Data from blockchain analytics firm IntoTheBlock shows that Cardano’s 30-day volume of whale transactions significantly exceeds Ether’s.
This development comes amid reduced regulatory risks as the U.S. SEC’s overreach becomes more evident. ADA enthusiasts are now awaiting the crypto’s next significant rally. ADA would have to jump 1,400% at the current price levels to attain Martinez’s prognosed $7 target. It’s worth noting that in crypto markets, history doesn’t repeat itself, but it often rhymes.