- Analyst Deezy_BTC sees a bullish “head and shoulders” pattern on ADA’s dominance chart, similar to the 2021 rally.
- This pattern previously propelled ADA to new highs, and a similar breakout could occur again.
- If the total crypto market cap reaches $5T, 3.5% ADA dominance suggests a significant price surge.
Cardano is poised for a major price breakout, with analysts projecting an ambitious $5 target within the current market cycle. These projections are based on chart formations on its market cap dominance chart. According to top analyst Deezy_BTC, ADA has formed a new “head and shoulders” pattern, which was last seen on ADA’s 2021 bull cycle rally.
At that time, Cardano’s market cap dominance chart had displayed a perfect head and shoulders structure. Depending on the context, this indicator is typically a reversal or continuation pattern. If dominance is surging post-pattern, that puts ADA in bullish territory compared to the rest of the market.
Deezy_BTC has highlighted how the distance between the “neckline” and the “head” shows a reliable breakout. Earlier, this key pattern unfolded exactly as predicted, propelling ADA to new highs.
Decoding Cardano’s “Head and Shoulders” for Potential Breakout
You can see the shoulder, you can see the head right there, and then the next shoulder. And the way you would measure that is you measure from the neckline to the top of the head, and then that will give you your breakout target.. And if we look at the range for the total crypto market cap, the market cap should be around $5 trillion when Cardano is topping out.
Experts have now identified a similar pattern and foresee a dominance level of roughly 3.5% of the total crypto market cap. This dominance can be obtained by Cardano’s market cap ÷ total crypto market cap. If ADA reaches 3.5% dominance at that level, experts suggest its total crypto market cap would likely surge to $5 trillion by the next market cycle.
Ambitious market cap projections such as the above, like $5 trillion, are highly speculative due to the market’s unpredictability. Additionally, dominance might shift, depending on the performance of other major assets too (Bitcoin, Ethereum, or Solana, etc.). Also, the token’s market may fluctuate slightly based on staking etc.