Veteran trader Peter Brandt has suggested that Cardano (ADA) has “bottomed” and is preparing for a “grand bull market,” which has brought the cryptocurrency into the limelight. Brandt’s analysis, which carries weight in trading circles, has elicited enthusiasm among investors in ADA.
A Sequence Of Reversals
The technical basis of Brandt’s analysis is the so-called double-bottom base. This base, which has been sustained for the past year, points to a possible change from a bearish to a positive direction. ADA lately exceeded its local high of $0.81, a crucial level now used as a support zone. For traders, this is a very important sign of resilience.
Brandt is of the opinion that this pattern establishes the foundation for a consistent upward trajectory. He observes that the cryptocurrency is currently consolidating above $1.10, a level that has previously served as resistance. Converting this into support could establish the beginning of substantial price increases.
Alt season????
Make no doubt about it, Cardano $ADAUSD has bottomed for a grand bull market
Blue check mark only so no rude trolls pic.twitter.com/Xn33Twot47
— Peter Brandt (@PeterLBrandt) January 16, 2025
Momentum Of The Present Market
ADA is currently trading at $1.13, with an intraday high of $1.14 and a low of $1.03 as of January 17, 2025. Although these figures may appear modest, they are in close alignment with Brandt’s optimistic expectation. The incremental price pattern is indicative of the underlying market confidence for those who are closely monitoring the altcoin’s trajectory.
The overall sentiment of the cryptocurrency market has a role as well. As talk of an “altcoin season” heats up, interest in alternative digital assets like ADA grows. This market-wide confidence frequently leads to larger price volatility for individual cryptocurrencies.
This focus on support and resistance zones underscores the importance of technical analysis in understanding cryptocurrency trends. Brandt’s emphasis on these levels adds a layer of credibility to his bullish forecast.
Breaking Resistance Levels
Cardano’s ability to convert resistance levels into support has been a key driver in its price movement. The first step was to exceed $0.81. The next issue is keeping the price over $1.10. If this level is maintained in the coming months, ADA may set more ambitious goals.
Broader Implications For ADA
The recognition of the double-bottom base by Peter Brandt implies Cardano has a bright future. Given the altcoin is consolidating above important levels and the larger market is in a positive state. ADA might be preparing for a major bull run. Still, investors should exercise great caution and be informed as the state of the market is erratic.
Cardano (ADA) Price Growth Catalyst
Meanwhile, a potential catalyst for Cardano’s price ascent is the approval of exchange-traded funds by the US Securities and Exchange Commission.
Polymarket traders anticipate that the SEC will give the green light to several XRP and Solana ETFs. According to analysts, billions of dollars will flow into these funds once the approval is given.
Featured image from Paleothea, chart from TradingView
Source: NewsBTC