Quantum Ascend: Cardano is preparing to rise to $ 10

An analyst at Quantum Ascend said that the cryptocurrency Cardano ADA $0.39 Cardano -0.74% Market capitalization $14.35 billion VOL. 24 hours $29.35 million may be ending a long correction phase and approaching a new stage of growth. In a video dated January 7, he showed a weekly chart of the asset and described the current structure as a multi-phase correction with waves A, B, C, D, and the expected wave E, the last one before a possible reversal.

According to him, this pattern resembles the «lower trendline reset» that was already observed in 2020 before the strong upward movement of the ADA. The analyst believes that the completion of this formation could activate a new momentum. He estimates potential price targets at around $ 5 in a conservative scenario and up to $ 10 in a more optimistic one. After that, he believes that the alt-season could trigger a broad correction in the crypto market.

Quantum Ascend drew parallels with past cycles: during the previous big market, ADA increased about 170 times, from a few cents to about $ 3. According to his calculations, the $ 10 target would correspond to a 22−25x increase, which is comparable to the 2021 altcoin season, when some altcoins showed an increase of ~21x. He calls the conservative scenario of 12-fold growth even more realistic.

Among the technical signals, the analyst noted the completion of the ABC structure, which supports the idea of a reversal, as well as the rise of the RSI indicator after a long stay in the lower zone. He saw signs of a decrease in negative momentum on the MACD.

Quantum Ascend emphasized that long-term timeframes change direction more slowly but are more reliable. It considers Cardano a promising project, although at the time of the comment, it had no open positions in ADA.

As of the time of the news publication, ADA was trading at $ 0.39.