Near the top of the Bitcoin bull market in 2018, Cardano (ADA) was dominating. Everything. Aside from a few select altcoins in Ethereum, XRP, and BCH, ADA was at the top of the market, rallying on a seemingly strong team and the promise of Cardano becoming the next leading blockchain that could service everything and everyone.
But, since then, the cryptocurrency has seen quite the fall from grace. Per TradingView data (seen below), the cryptocurrency has collapsed by 96.74% against the U.S. dollar since the all-time high well above $1.
Against Bitcoin, the cryptocurrency has collapsed too, dropping by dozens of percent against the leading digital. Despite this, a top analyst recently laid out a case for a massive explosion in the price of ADA against Bitcoin (ADA/BTC).
Three Technical Reasons Suggest Cardano (ADA) Surge On Horizon
Josh Olszewicz, the cryptocurrency analyst at Brave New Coin, recently noted that the chart of ADA/BTC is looking prime for an explosion higher from a technical analysis perspective. He specifically looked at three factors:
- Firstly, the trading pair has seen nearly six months of accumulation in a relatively tight range, with ADA failing to break below key support levels but also failing to move above resistance. The strong accumulation pattern near the lows could suggest a rebound is forming.
- Secondly, the daily Ichimoku Cloud, which is a sort of all-in-one indicator tracking key price levels and market trends, has turned bullish for Cardano against Bitcoin. A bullish cloud predicted Bitcoin’s price explosion from the low-$7,000s to $9,200 which we just saw.
- And lastly, should ADA make an end-to-end Ichimoku Cloud move as the pair moves above key resistances, the price of the cryptocurrency could more than double within a few months’ time.
fundamentals aside, $ADA looks absolutely bonkers to me
– nearly 6 month accum
– daily cloud turning bull
– high TF e2e = 2x+ pic.twitter.com/cexF7z0KwX
— Josh Olszewicz (@CarpeNoctom) January 22, 2020
Bearish Long-Term Outlook for Alts; Bullish Long-Term Outlook for Bitcoin
Although ADA is looking extremely bullish from the technical perspective laid out, the long-term outlook for the altcoin class of crypto assets seems to be decisively bearish.
Not to mention, analyst Ceteris Paribus recently noted that the launch of the CME’s Bitcoin options could be bearish for altcoins: “If it isn’t obvious, the more we see products like this get offered the more bearish it is for the majority of alts,” they wrote.
Featured Image from Shutterstock