Renowned crypto analyst Alexander Legolas has shared compelling insights on the historical price movements of Cardano (ADA), suggesting that an explosive rally for the cryptocurrency is imminent.
According to Legolas, key indicators indicate an impending “ADA season,” driven by a significant drop in Bitcoin’s dominance. Legolas elaborated, Historically, Cardano has performed best when Bitcoin dominance declines. This pattern is evident in the monthly chart below, especially as we approach the close in a few days.
Key Indicators Point to ADA Rally
Bitcoin dominance is currently rejected at a multi-year trend line from November 2016. Legolas emphasized that this trend line has consistently marked significant cycles where Bitcoin’s dominance diminishes. Concurrently, several indicators suggest a bearish outlook for Bitcoin, further supporting the potential rise of Cardano and other altcoins.
The Relative Strength Index (RSI) shows a sharp downward curve, indicating a move towards the downside. The Stochastic RSI has crossed down, with the blue line moving over the orange line, a bearish signal.
The Moving Average Convergence Divergence (MACD) has topped out and is converging towards a bearish cross. “Get ready,” urged Legolas. “In the next few weeks, Cardano and altcoins will rally hard into our first altseason of this cycle.”
Analyzing ADA Historical Price Actions
Legolas drew parallels to the last bull market during the previous halving year. ADA fluctuated between $0.0177 and $0.1546 in the last bull market from January to October 2020. This period was frustrating, but between October 2020 and September 2021, Cardano surged from $0.1546 to $3.10.
So far in this cycle, in the current halving year, ADA has ranged between $0.22 and $0.83. As the year progresses, a ramp-up is anticipated, leading to a major rally by 2025. Investors are advised to hold tight, as the closer we get to the lift-off, the harder it is to hold on.
Alexander Legolas says, “ADA is just a step away, therefore, from a big rally run that is fueled by the fall of Bitcoin dominance, supported by bearish signs of some of the key indicators.” All eyes in the world of crypto are watching now because these coming weeks might mark the onset of the new alt season with ADA in the lead. Undoubtedly, the journey to 2025 will be an adrenaline rush for any investor in ADA.
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