The Cardano price has slipped this year, erasing some of the gains it made last year when it jumped from $0.28 to a high of $1.327 within a few months. The ADA token was trading at $0.67 on Wednesday as the market improved. This article examines whether Cardano will double and reach its 2024 highs as the cryptocurrency market rallies.
Cardano Price Prediction: Falling Wedge Points to More Gains
Technicals suggest that the Cardano price is on the cusp of a strong bullish breakout in the next few months.
The weekly chart shows that it has slowly formed a falling wedge pattern, a popular bullish reversal sign. This pattern forms when the price is making lower highs and lower lows, but the slope of the lows is steeper than the slope of the highs, creating a wedge shape that slopes downward.
A bullish breakout typically occurs when the two lines of the pattern converge at their meeting point. This confluence has now happened, and the price has moved above the upper side of the trendline.
Moreover, signs indicate that the Cardano price is in the second phase of the Elliott Wave pattern. This phase is usually bearish and is followed by a third bullish one. The third phase of the Elliott Wave is usually the longest.
Therefore, there is a likelihood that the ADA price will bounce back and hit its highest level in 2024. This brings the near-term target to $1.32. A break above that level may point to further gains toward the psychological $2 mark over time.
READ MORE: Cardano Price Is Soaring: Will ADA Hit $2 as ETF Odds Rise?
Top Catalysts that Will Push ADA Price Higher
The first main catalyst for Cardano is Bitcoin, which has staged a strong comeback and moved above $94,000 for the first time in over a month. This performance means that the coin will likely keep rising, as many analysts anticipate.
Further, there are signs that whales have continued to accumulate ADA. Whale accumulation is a good thing, as these investors are more experienced and sophisticated. The chart below shows that the volume held by holders with between 10 million and 100 million has jumped to 35.7%. Also, the number between 1 million and 10 million has jumped to 15.7%.
From a macro level, Cardano will benefit from the eventual approval of a spot ADA ETF, a trade deal between the US and China, and the upcoming integration of Bitcoin staking in the network.
Additionally, you can read more about why Stellar’s XLM and Ripple’s XRP prices are about to surge: Here’s Why Stellar’s XLM and Ripple’s XRP Prices Are About to Surge
