The altcoin market was on a red-hot streak the previous week, with large-cap assets like Cardano, Solana, and Dogecoin posting double-digit profits. However, the past week’s action has been a brutal opposite of the one preceding it, with the Cardano price declining recently by as much as it gained in the previous week.
However, the cryptocurrency seems to be recovering nicely, with the ADA price now stabilizing above the $0.9 mark. The question, though, is — how soon could the Cardano price return above the psychological $1 level?
Here’s How ADA Price Could Reclaim $1
Ali Martinez, a top crypto analyst on the social media platform X, has shared an exciting analysis of the price of Cardano in the short term. According to the popular pundit, the altcoin’s value could return to above the $1 mark over the next few days.
The rationale behind this bullish projection is the formation of a bull pennant pattern on the one-hour price chart. A bull pennant is a pattern used in technical analysis marked by a price jump (the flagpole) before a consolidation range with converging trend lines (the pennant), which is followed by a price breakout in the same direction as the initial flagpole.
Typically, the bull pennant pattern serves as a continuation indicator, signaling the persistence of a price trend (usually the upward trend). The price target from the chart formation is derived by measuring and replicating the length of the initial flagpole at the end of the end of the consolidation range.
As shown in the chart above, if the price of ADA successfully breaks out of the bull pennant formation, the altcoin could visit above the $1 mark again. This represents an impressive 10% surge from the current price point.
Crossing above the $1 mark again might be the spark that the Cardano token needs to conjure a rally that would see it return to its all-time high price. As revealed in a recent article, recent historical patterns point to a potential rally to a new record-high price for the altcoin.
Cardano Price At A Glance
As of this writing, the price of ADA stands at around $0.9266, reflecting an almost 2% increase in the past day. However, this positive single-day performance did little to relieve the bleeding the altcoin has suffered in the past week. According to data from CoinGecko, the Cardano price is down by over 15% in the last seven days.
Source: NewsBTC