Over the past few weeks, Cardano (ADA) has been declining, showing a monthly loss of around 20% and a reduction in its annual gains to a little over 61%. Experts predict that ADA, now trading at $0.522, may go through a consolidation phase before starting a significant climb.
According to a recent prediction made by cryptocurrency researchers on ADA, the current price behavior closely resembles the pattern seen between 2018 and 2020. Martinez states that if this pattern continues, there’s a chance the eighth-largest cryptocurrency asset by market capitalization will see a period of consolidation from now until April. His study suggests that this consolidation phase may be an important prelude to the restart of a positive trend.
A Twitter user named Captain Faibik recently posted a chart showing a “bullish pennant formation” for ADA, which contrasts with Martinez’s prediction of a tangible bullish trend four months later. By the end of this month, the cryptocurrency can potentially rise to $0.80, based on this analysis. Cardano saw 3,064 staking pools at the start of 2024, which added up to a staked quantity of 22.76 billion ADA, or 64.94% of the total supply. The increase in activity is also evident in several Cardano-based projects.
Based on the data, it seems that most of the increase happened in the last week, especially with the on-chain exchange Minswap and the loan protocol Indigo. According to information gathered by DeFiLlama, Cardano’s total value locked (TVL) is currently $357.2 million, and its 24-hour trading volume was $7.78 million. Additionally, there was a 60% increase in Cardano NFT sales volume, reaching nearly $9 million.
