Analyst Ali Martinez predicts that the price of Cardano (ADA) could see a 22x increase amid recent market challenges and reduced on-chain activity. Despite Bitcoin breaking above $71,000 today, Cardano is trading at $0.3473, down 12% from its highs a month ago. Amid a fresh round of bullishness in the crypto markets, Cardano is up just 2.2% today, and this underperformance is worrying for Cardano holders. However, on-chain analyst Ali Martinez recently reassured them on the outlook with an optimistic tone based on historical trends.
In his analysis shared on X, Martinez said ADA is repeating the pattern it established in 2020. He stressed that if history repeats itself, Cardano could see a price surge as early as November 18. He also noted that ADA is likely to maintain its bullish trend and reach a market peak in September 2025.
Martinez deduced these dates from the observation that Cardano went through a 672-day consolidation period before the previous bull run began on November 16, 2020. According to his analysis, the price of ADA increased by 4,095% from around $0.09 to reach its all-time high of $3.10 ten months later.
It is worth noting that ADA experienced 455 days of range-bound trading after that peak. While Cardano had risen as high as $0.80 earlier this year, it has since fallen 65% to its pre-Q1 lows.
Martinez believes that Cardano has the potential to recalibrate its historical pattern, which saw the altcoin surge 2,288% to a new all-time high of around $6.50. In his earlier analysis, he had suggested that ADA could reach highs between $7 and $10 this season.
However, market participants have become increasingly skeptical about ADA’s prospects given recent price action. In a comment to Martinez’s analysis, one investor noted that while the top 100 new coins on the market have seen 20% gains amid the market rally, ADA and several other older coins have struggled to keep up.
“I really hope it goes to $4 or higher, but I don’t think it’s going to even go to $3,” the investor said.
Meanwhile, the latest news from IntoTheBlock comes with a warning for ADA holders. IntoTheBlock revealed that Cardano’s NVT ratio has risen to its highest level since June. The metric suggests that on-chain activity has declined relative to price gains.
IntoTheBlock highlights that this overvaluation metric is particularly significant given ADA’s recent underperformance, suggesting that further declines are likely.
The analysis also noted that historically, high NVT ratios have often been a precursor to price pullbacks. It concluded that without an increase in on-chain participation, Cardano’s price may struggle to maintain its momentum.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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