Cardano now has the potential to hit $6 says an analyst amid recent market challenges and declining on-chain activity.
Analyst Ali Martinez has projected a potential 22X increase in Cardano (ADA) prices, despite recent market difficulties and a drop in on-chain activity.
Currently, while Bitcoin has surged past $71K, Cardano is trading at $0.3473, reflecting a 12% decline from its peak value a month ago.
ADA has only managed a modest 2.2% gain today, even as bullish momentum returns to the crypto market.
This lackluster performance is concerning for ADA holders.
However, Martinez offers a more positive perspective based on historical patterns.
He notes that Cardano began its last significant bull run on November 16, 2020, after a consolidation phase lasting 672 days.
During that period, ADA skyrocketed by 4,095%, climbing from about $0.09 to an all-time high of $3.10 within ten months.
Since then, ADA has spent 455 days within a range following that peak.
Although there was a breakout earlier this year that saw Cardano hit $0.80, it has since dropped by 65%, returning to levels seen before the Q1 rally.
Martinez believes that if Cardano can reestablish its historical trend, it could potentially soar by 2,288% to reach a new all-time high of around $6.50.
In previous analyses, he had even suggested a possible peak of $7 to $10 for ADA this season.
However, skepticism is growing among market participants regarding ADA’s future, especially as newer coins in the top 100 are achieving 20% gains, while ADA and other older coins struggle to keep pace.
One investor expressed doubts, stating, “I really hope it can reach $4 or higher, but I feel like it won’t even hit $3.”
Additionally, a recent update from IntoTheBlock has raised concerns for ADA holders.
The firm reported that Cardano’s NVT ratio has climbed to its highest level since June, indicating a decrease in on-chain activity relative to price increases.
IntoTheBlock emphasized that this overvaluation signal is particularly relevant given ADA’s recent underperformance, suggesting the potential for further declines.
The analysis noted that historically high NVT ratios often precede price pullbacks, indicating that Cardano may struggle to maintain its upward momentum without a boost in on-chain engagement.
But I’m curious to know what you think — leave your thoughts below.
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