- A buy signal at 0.618 Fibonacci retracement hints at Cardano reaching $0.93, an 82% increase.
- ADA’s current price decline is attributed to the overall crypto market drop ahead of the SEC’s decision on a Bitcoin spot ETF.
- Cardano attracted $3.7 million in inflows during the first week of 2024.
Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, is poised for a substantial uptrend, with crypto analyst Ali identifying a compelling buy signal on its daily chart.
The signal, activated by a recent touch of the 0.618 Fibonacci retracement level, indicates a potential 82% surge for ADA. Ali believes that if this signal holds, Cardano could break past the $0.55 resistance, setting the stage for higher targets at $0.69 and possibly even reaching $0.93.
Source: ali_charts
Despite the broader cryptocurrency market experiencing a downturn due to heightened expectations surrounding the US Securities and Exchange Commission’s (SEC) decision on a Bitcoin spot exchange-traded fund (ETF), Cardano’s current price decline is viewed as a temporary setback. Ali remains optimistic, drawing parallels to ADA’s 2018 to 2020 price pattern and suggesting that the cryptocurrency may consolidate around its current levels until April. This consolidation, he predicts, could lay the groundwork for a resumption of the bull run.
In a positive development, Cardano attracted $3.7 million in inflows during the first week of 2024, according to the latest CoinShares report on digital asset investment products. Despite the challenging market conditions, this influx of funds underscores growing investor confidence in Cardano’s long-term potential. Bitcoin led the inflows with $113 million, while Cardano’s notable $3.7 million inflow reflects a strong investor interest in the cryptocurrency.
