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As the altcoin season approaches, Cardano (ADA) is gaining momentum, having recorded more than a 14% increase in the past week, according to CoinMarketCap. Notably, a crypto analyst has identified a strong buy signal for ADA, suggesting that it could potentially set off a parabolic rally that might drive the price of Cardano to new all-time highs around $5.
Cardano New Buy Signal To Trigger Rally To $5
On September 24, crypto analyst, TradingShot published a detailed analysis and report on Cardano’s price movements, centering on key technical indicators to predict the cryptocurrency’s future price. According to the analyst, Cardano is currently flashing one of the most powerful long-term buy signals possible on the weekly time frame.
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Based on this strong buy signal and other technical indicators, the crypto analyst predicts that Cardano could begin a new parabolic rally in the coming weeks. The expectation is that the higher highs trend line will set a resistance level for ADA’s price movements, potentially catalyzing an increase to $5.
Highlighting these technical indicators, TradingShot revealed that Cardano’s 1W Logarithmic Moving Average Convergence Divergence (LMACD) is finally forming a bullish cross. In Cardano’s case, this bullish cross is the first formed since October 9, 2023, and is currently signaling a strong buy signal that could push ADA towards an uptrend.
Moving on, Cardano’s Relative Strength Index (RSI), a momentum indicator that measures the speed and change of an asset’s price movements, has been “ranging” since May 2024. This means that the cryptocurrency has been trading below the 1W 50-period Moving Average (MA50) on the weekly chart.
Based on these key technical indicators, TradingShot has drawn a parallel between the previous crypto bull cycle and Cardano’s recent price movements. He observed that ADA’s current market conditions were almost the same as during the 2021 bull cycle. At the time, a bullish Megaphone appeared on a 1W LMACD bullish cross, followed by a bottom formation triggered by a 1W MA50/MA100 bullish cross while the 1W RSI was in a consolidation phase.
As a result, the analyst has suggested that these recurring technical indicators were a signal that Cardano may be gearing up for a massive price rally. He boldly forecasted that ADA would rise from its current price of $0.38 to $5, marking its next top for this bull cycle.
Analyst Says “ADA Will Hit $1 Before Christmas”
In contrast to TradingShot’s ambitious $5 price prediction for ADA, another crypto analyst, identified as ‘Deezy.eth’ on X (formerly Twitter), has offered a more conservative outlook for the cryptocurrency. Deezy.eth predicts that Cardano will hit $1 before December 25, 2024.
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The analyst has grounded his optimistic projections on several factors which he considers bullish propellants for Cardano.This includes ADA’s weekly time frame bullish divergence, the start of rate cuts after four years, the recent launch of the Cardano Chang hard fork and the reduced appeal of ADA’s “low float, and high FDV.”
Featured image created with Dall.E, chart from Tradingview.com
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