Despite increasing to a three-year high on Feb. 5, Cardano (ADA) is still 185% away from reaching its all-time high price.
The movement for ADA is also interesting since the all-time low price was reached in March 2020. This is unlike the majority of other altcoins with significant price histories. Many of which reached their respective lows in 2017 and 2018.
In this article, BeInCrypto will compare the first market cycle for ADA to the current one, attempting to isolate the similarities and differences between them.
First Cardano Market Cycle
The first market cycle for ADA began with a low of $0.08 reached on Nov. 30, 2017. After this, ADA began an extremely rapid upward movement. It increased by 1,645% in only 35 days — a rate of increase of 47% per day.
This move culminated with a high of $1.40, reached on Jan. 4, 2018. This all-time high price for ADA still stands.
After reaching its high, ADA began an extended correction which lasted for 799 days. During this period, ADA lost nearly 99% of its value, culminating with a low of $0.017 on March 13, 2020. This currently acts as its all-time low price.
However, ADA has been moving upwards since.
The logarithmic chart is used in the image above in order to better visualize price fluctuations.
Current Upward Move
ADA has been moving upwards since reaching the aforementioned low in March, having increased by 2,835% in 329 days, a rate dissimilar to that of the first market cycle.
An increase of 185% would be required for ADA to reach a new all-time high price. As has been evidenced by the first market cycle, once ADA gets moving, it’s possible that it could reach a new high in a short amount of time.
However, there are three significant resistance areas above the current price — specifically the 0.382, 0.5, and 0.618 Fib retracement levels. These levels are likely to cause rejections once ADA reaches them, at least in the short-term.
Once ADA clears the 0.618 Fib retracement level at $0.88, the rate of increase is likely to accelerate.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
