Cardano (ADA), one of the leading cryptocurrencies in the market, has been in the process of consolidation for almost a year. However, some analysts and investors believe that the token is preparing for a big exit in the near future.
According to cryptocurrency analyst Ali Martinez, Cardano has been trading in a narrow range between $0.46 and $0.24 for 329 days. The analyst compared this to the previous accumulation phase, which lasted 665 days from 2018-2020, when Cardano fluctuated between $0.10 and $0.28.
According to the analyst, after this accumulation phase, Cardano rose 2985% to reach an all-time high of $2.46 in May 2021.
Based on the history and price movements, Martinez suggested that Cardano could break out of its current range around February 2024.
On the other hand, Santiment, a crypto analytics platform, reported that trader sentiment towards Cardano is low, with its market cap dropping by 35% since it peaked four months ago.
However, the platform also noted that large owners of Cardano, also known as sharks and whales, are not deterred by the price drop. In fact, there are currently 25,294 wallets holding more than 100,000 ADA tokens, the highest number in the last 16 months.
*Not investment advice.