In our Cardano price forecast 2021 we talk about a chart pattern that ADA has developed against the US dollar over the last 3 years. The special thing about it is that it will probably break out in the next few weeks and give us a foretaste of where the next upward rally could take the Cardano course.
Will the ADA price double this year?
A question that certainly needs an answer. In this Cardano price forecast, we therefore provide you with a specific goal for the year 2021 and tell you what to look out for in the next few weeks and months.
This gigantic chart pattern could inspire the Cardano price in 2021
Cardano (ADA) has already put in an incredibly good performance this year. From the beginning of 2021 to the end of February, the Cardano price rose by an almost unbelievable 900%. But as if that wasn't enough, a continuation of this success story seems to be emerging in the chart.
The special thing here is that it is a chart pattern that has developed over 3 years. Such a long duration is highly unusual for any type of chart pattern. At the same time, the meaningfulness of the pattern for the Cardano course is particularly important due to this long duration.
The above illustration shows that the Cardano course has formed a gigantic cup with a handle formation over the past 3 years. ADA is currently in the phase of the handle formation, whereby the price range between $ 0.98 and $ 1.05 has already emerged as an important support zone.
There are also 2 indicators that suggest that the breakout will be followed by a significant price rally for ADA. One is the immense height of the formation and the other is the fact that the right edge of the cup is well above the left edge. This is something special in that formations that have this property are said to perform particularly well.
ADA's upcoming price rally and a price forecast of $ 2.60 or more
The great thing about chart patterns is that they usually allow us to calculate a specific price target. In general, what is referred to is a so-called minimum course target, which in theory is reached or even exceeded in a successful formation. In the specific case of our Cardano price forecast, we can determine an exact price target for ADA with the help of the cup with Henkel formation.
The minimum course target is calculated according to the textbook by measuring the distance between the bottom of the cup and the height of the right cup rim. This value is then projected upwards onto the breakout point. The breakout point marks the moment at which the Cardano course again exceeds the height of the right cup rim. Since such an outbreak is not yet available at the time of writing, we have indicated in the figure above what the further course of the course could look like.
Since we already know the height of the formation and the height of the right cup rim, we can determine the minimum price target in advance before the actual breakout. After applying the rule above to calculate the target price, this is almost exactly $ 2.60. This target price is 116% above the current Cardano price of $ 1.21. Accordingly, our Cardano price forecast 2021 is that ADA will reach $ 2.60 or even more this year.
Which narratives could spur the ADA price
In order to achieve such a significant price increase, a cryptocurrency with a market capitalization that is already as large as Cardano's (ADA) needs a narrative that is understandable and credible for investors. Cardano has such a story.
Even the last ADA price rally can be traced back to a very simple and therefore very tangible narrative for Cardano. With the Mary upgrade in March, Cardano has become a multi-asset network. According to the latest reports, the smart contracts will go live on ADA's mainnet in August this year. Cardano thus has all the essential properties that have helped Ethereum (ETH) to achieve its unique success story in this area.
With the possibility of creating native cryptocurrencies on the Cardano blockchain and the ability to exercise smart contracts on it, the Ethereum challenger will also be able to take advantage of the success story of decentralized finance (DeFi). Just the idea of it will encourage investors to invest in ADA. You have already been able to impressively observe the immense impact these DeFi narratives can have using the example of the BNB token and the Binance Smart Chain this year.
These narratives mixed with the chart pattern above could make for a very explosive mix for the Cardano price in 2021.
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