- This is why a $24 price tag is possible, but not likely in the next bull run.
- ADA bears are losing grip on the cryptocurrency as bullish hope takes over.
What if Cardano’s native cryptocurrency ADA could rise past the $20 price level? There is a growing sense that the crypto winter is over and the next bullish phase has arrived. As such, many analysts are ditching their predictions.
Is your portfolio green? Check out the ADA profit calculator
One such forecast suggests that the ADA could rise to $24 at the peak of the recently initiated long-term rally. For context, the same cryptocurrency has only peaked at just above $3, with a market cap of over $91 billion.
BREAK: @muntbureau predicts that $ADA could go to $24 this cycle
pic.twitter.com/Pn2wnT0QfM
— Cardano Feed ($ADA) (@CardanoFeed) October 25, 2023
Is €24 a realistic price target?
First of all, it is worth noting that some crypto price predictions in the past seemed absurd until they became reality. That said, let’s take a look at what it would take for ADA to rise to its predicted price tag of $24.
ADA would need a market cap of more than $870 billion for the price to rise to $24. That’s roughly 9.5 times the market cap at the height of the last bull run. That would be a tall order for Cardano, but certainly not impossible in a scenario where it reaches mass adoption.
Cardano currently has a market cap of $10 billion, which means it still has an incredibly long way to go before it reaches the $870 billion target needed to reach its $24 price tag. Some may consider this an unrealistic goal for now.
What is a more realistic goal for ADA?
The prices of major cryptocurrencies tend to double or even triple with each subsequent cycle peak, compared to previous bull runs. If that proves to be the case during the next bull run, traders can expect the next peak around the $6 to $8 price range, possibly even higher.
ADA’s short-term performance is already in line with the bullish outcome after losing long-term support. It exchanged hands at $0.293 at the time of writing, which is a gain of around 22% from the support level.
Source: TradingView
Here are some interesting observations that have occurred in recent weeks. The open interest in ADA has shifted in favor of the cryptocurrency. The number of sales positions has dropped significantly compared to what we saw in early October.
Source: Hyblock Capital
Read more about ADA’s 2024 price forecast
The buy positions appear to have remained consistent over the same period, suggesting that the current bullish wave was fueled by bears losing interest. Nevertheless, there has been a slight increase in bullish volume since Monday this week.
Source: Santiment
According to the MVRV ratio, ADA’s profitability is now at its highest level in four weeks. Most of the increase was seen in the last seven days, indicating that there was a strong wave of demand during the same period.
