Cardano (ADA) price is displaying a historical trend that might keep it in a consolidation phase until mid-2024.
According to market analyst Ali Martinez, the current consolidation Cardano currently trades in is similar to the one recorded from 2018 to 2020. The worst-case scenario is that should history repeat itself, Cardano could stay in this consolidation phase until July 2024.
Cardano Consolidation Aligns
Cardano printed a visible rally from late 2018 to July 2019, per the accompanying chart. An elongated crash to $0.031 subsequently accompanied this bullish rally during the COVID-19 crisis in 2020. Amid these price movements, ADA remained in consolidation.
Cardano 1W Chart
A recovery with a steeper curve than the 2019 rally surfaced from March to July 2020. This surge ended the first observable consolidation cycle, with ADA recording a significant breakout beyond the resistance level at $0.1.
This mega rally lasted from Q4 2020 to September 2021. During this time, Cardano attained its All-Time High (ATH) of $3.058, soaring as high as 2984.75% from its previous consolidation breakout point, as pointed out earlier.
This rally was short-lived following the crypto winter that dragged the price down to a low of $0.246 early this year. This price level resumed another consolidation phase that closely resembles the late 2018 to July 2020 cycle.
Can Cardano Make an Exception?
Because crypto markets sometimes move in response to unforeseen circumstances, chances are high that Cardano can print an earlier breakout from the consolidation trend than the July 2024 predicted by the analyst.
Recently, there has been a growing criticism of Cardano, which has remained one of the biggest losers in several metrics. Per data from IntoTheBlock, Cardano has seen a fast decline in profitable addresses, with wallets in losses now making up over 94% of addresses on the wallet.
Despite this poor outlook, Cardano remains poised for long-term growth when its growing Decentralized Finance (DeFi) ecosystem is fully priced. ADA is changing hands at $0.2456 at the reporting time, up 0.2% over the past 24 hours.
