Cardano price remains in a tight range this week as crypto investors reacted to numerous events like the Fed decision and Trump’s speech. Such periods of fear and low volume are often ideal for contrarians. One of these contrarians believes that the ADA price may wake up and surge to $2, a 190% surge from the current level.
Crypto Analyst Predicts Cardano Price to Hit $2
Buying Cardano at this level for short-term gains calls for courage as it has crashed by 45% from its 2024 highs. However, Ali Martinez, a crypto analyst, believes that the ADA price is primed for a strong breakout to $2 if it moves above $1.15.
As shown in the chart below, he has identified a broadening channel on the daily chart. This falling wedge often results in a strong bullish breakout over time. He argues that more gains will be confirmed if ADA jumps above $1.15. This price coincides with the upper side of this wedge.
This bullish outlook is also confirmed by the fact that the wedge started forming after Cardano price surged from $0.274 in August last year to $1.32 in November. That could be a sign that it has formed a bullish flag chart pattern.
However, the bullish ADA price forecast would be invalidated if the coin drops below $0.60. This is a notable price since it is on the lower side of the channel.
Elliot Wave Pattern Supports a Bullish ADA Price Outlook
Ali Martinez’s bullish Cardano price prediction confirms an argument made in a separate CoinGape article. In it, the analyst identified that the coin was forming an Elliot Wave pattern on the weekly chart. He identified the target price at the psychological point at $2.
The bullish Elliot Wave pattern comprises five alternating waves, with the second one being a bearish one. After this, an asset usually moves to the third one, which is usually the most bullish and the longest one. The target to $2 is based on the view that it is the 61.8% Fibonacci Retracement level.
A crash below $0.523 will cancel the bullish Cardano outlook as it will invalidate the impulse Elliot Wave phase. Such a move would see the coin dropping to $0.274, the lowest level on August 5.
Potential Catalysts for Cardano
Cardano price will need a strong catalyst to confirm the bullish outlook. The most straightforward catalyst is the ADA ETF approval. It would also benefit from the creation of a US cryoto stockpile as Trump has suggested.
A broader crypto bull run would be a potential catalyst. A decisive breakout of BTC and other altcoins usually follows this price action.
A far-fetched Cardano price catalyst is where Elon Musk selects it as the blockchain network for the US government as some commentators have suggested.
The post Top Crypto Analyst Explains How Cardano Price Can Surge 190% appeared first on CoinGape.
