From $0.58 to $12 Cardano Price? Why One Analyst Believes ADA Could Replicate Its 2021 Parabolic Rally

Cardano (ADA) traded relatively flat on Tuesday despite a strong resurgence of over 6% in the past seven days. Generally, ADA has been navigating a challenging recovery following a sharp decline earlier this month, driven by a broader crypto market downturn and substantial whale sell-offs. On February 4, popular crypto analyst Ali Martinez underscored the severity of this exodus, noting, “Whales have offloaded over 330 million ADA and haven’t bought the dip yet.” However, there has been a shift in whale activity with Martinez now reporting significant whale accumulation, as over 70 million ADA tokens have been acquired in the past four days. “Whales have moved over 70 million ADA in the past 96 hours,” Martinez tweeted on Thursday, highlighting the renewed interest from large investors. In a separate analysis, Martinez compared ADA’s current trajectory to its 2020-2021 cycle, suggesting history may be repeating itself. “ Looking back at history, ADA seems to be following the same pattern from 2020 to 2021 at a slower pace, which could soon lead to a parabolic rally” he stated. During the previous bull cycle, ADA skyrocketed by approximately 1,400% within nine months, reaching an all-time high of $3.10 in September 2021. If Martinez’s prediction proves accurate, ADA could surge to around $12 before year-end. Supporting the pundit’s analysis, on-chain data from crypto analytics firm Santiment indicates that ADA whales and sharks have been consistently accumulating since late November 2023. On Wednesday, the firm highlighted ADA’s surprising price surge despite other crypto assets retracing, pointing to the aforementioned accumulation. “Wallets holding at least 1M ADA have been consistently accumulating since late November of 2023, adding 1.41B more coins and 2.35% of the entire supply during this 15-month stretch.” wrote Santiment . Despite market volatility, the firm also noted that ADA’s price has surged by 107% since this accumulation cycle began. Elsewhere, Cardano founder Charles Hoskinson also weighed in on the market outlook during a Thursday interview with crypto analyst David Gokhshtein, noting that liquidity could soon begin rotating from meme coins back to ADA and other legacy crypto assets, which could boost prices. “The markets are going back to bluechips, the reliable ‘dinosaur’ coins like Cardano, Ethereum, and XRP. It’s institution-led. Give it another 6 to 12 months. We’ll see a bull market probably when the stablecoin bill passes,” he said. He also emphasized the evolving regulatory landscape, predicting that the U.S. could pass foundational crypto legislation within the next 90 to 120 days, paving the way for a stronger framework for crypto businesses. Additionally, Hoskinson predicted that the U.S. government, which currently holds 212,000 Bitcoin, will first allow it to be stored in a sovereign wealth fund. Following that, he expects Senator Lummis and President Trump to begin acquiring other assets, suggesting ADA could be on the list. At press time, ADA was trading at $0.58, representing a 0.24% drop over the past 24 hours.

Source: ZyCrypto