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- The Cardano price prediction mirrored the early 2021 pattern.
- Should the correlation hold, an extra 45% could be likely by the end of November.
Cardano’s [ADA] price action mirrored the early 2021 pattern, which could yield over +45% if the trend plays out this week. The altcoin’s +200% upswing in the past three weeks has pushed it to $1, a level last seen in 2022.
Will ADA’s 2021 pattern extend?
When zoomed out on the weekly charts, ADA’s rally to the $1-$1.5 zone was similar to the 2021 price action.
In early 2021, ADA surged from $0.3 to $1 in three weeks, a period similar to that of its latest +200% rally.
Source: ADA/USDT, TradingView
In the 2021 pattern, ADA fronted an extra 45% rally to hit $1.5 before consolidating for three months, followed by a breakout to $2.4.
If the pattern correlation continues, ADA could surge +45% to $1.5 this week before entering a price consolidation.
As of press time, the weekly candlestick closed above $1, and the 2021 price range further emboldened the bullish inclination.
As per the Stochastic RSI reading, the strong price momentum also supported the bullish outlook.
Additionally, the OBV (On Balance Volume) corroborated the thesis, but had to clear above the March peak to reinforce more headroom for growth.
However, a break below $1 will invalidate the bullish thesis and could drag ADA to the lower support level at $0.7-$0.8 (bullish order block, cyan).
Mixed whale signals
Source: Santiment
Two key whale cohorts, those holding 1M-10M ADA and 10M-100M ADA, showed mixed signals over the weekend.
The latter, with over 34% control (yellow), reduced exposure since the 20th of November. But they were back in accumulation mode, as seen by the slight uptick on the yellow line as of press time.
However, the former (1M-10M ADA) holders partially distributed after last week’s aggressive buying spree. This mixed signal from whales could bleak ADA’s next price direction.
Read Cardano [ADA] Price Prediction 2024-2025
That said, traders remained uber-bullish on the altcoin, with Binance’s top traders dominating at nearly 70% in net long positions.
Source: Coinglass
The altcoin’s next price move could also be determined by Bitcoin’s [BTC] dominance. A surge in BTC dominance would fizzle ADA or trigger a pullback, while a decline in the king coin’s market share could be bullish.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
