Analyst Says Cardano "Back in Business" After Bullish Diamond Bottom Retest

Source: CryptoNewsNet Original Title: Analyst Says Cardano “Back in Business” After Bullish Diamond Bottom Retest Original Link: Cardano (ADA) could bounce from here, according to analyst “The ChartWhisperer.” This comes as the cryptocurrency pulls back to revisit a diamond bottom support on the 1-week chart.

Remarkably, ADA is already showing a glimpse of recovery. After three green daily candles from Friday to Sunday, the momentum has carried into this week, with Cardano rallying over 3% in the early hours of Monday.

Cardano Diamond Structure Support

For context, the analyst noted that Cardano’s all-time chart formed a diamond bottom pattern. The weekly chart analysis shows that the coin has been trending within this diamond-shaped structure since April 2018.

Meanwhile, ADA broke out from the pattern in October 2023, moving from around $0.24 to March 2024’s high of $0.81. However, the coin entered a correctional phase after this peak price, retesting the diamond breakout area around $0.27 in August 2024.

A successful retest sparked another round of bullish momentum for Cardano, contributing to its strong price growth through December 2024. ADA soared from the lows of $0.27 to a high of $1.32, representing a 389% rise.

Back in Business

History seems to be repeating itself, as TheChartWhisperer highlighted a similar occurrence in Cardano’s price action. After the December 2024 high, it recorded another pullback, retracing 71% to the current levels.

The chart shows a flash crash to $0.27 on October 10, which retested the diamond bottom support, followed by a rebound to $0.70. Afterwards, the cryptocurrency has slowly declined to its low of $0.34 last week.

The analyst sees a repeat of previous price development from the support, stating that Cardano is “back in business.” From the current levels, he predicts a price surge to unprecedented heights.

Specifically, his ADA forecast of $48 remains firm. While it did not materialize in his September 2024 prediction, the current retest of the major support has put the target back in play.

Notably, a $48 price represents a 12,531% increase from the current market price. With a circulating supply of 35.93 billion, this gives it a market cap of $1.72 trillion, closely aligning with Bitcoin’s current valuation. This shows how ambitious the analyst’s projection is. Investors should not regard it as investment advice.