Cardano (ADA) appears primed for a major price surge based on recent technical analysis, albeit concerns remain that could limit the upside.
According to prominent crypto analyst Guy Turner in a recent video, ADA is flashing bullish signals that could propel its price 70% higher to $1.Â
Turner pointed to ADA forming a “bull flag” pattern on its weekly chart, which typically implies the continuation of an uptrend. This comes after ADA hit lows last June when the SEC labeled it a security, but has since recovered starting in October like many altcoins.Â
However, Cardano’s gains significantly lag other major cryptocurrencies over the past year. Turner believes decreasing long-term interest rates, not supply/demand dynamics, have driven ADA’s price action recently. This suggests ADA could still surge with the broader crypto market in 2023 despite its underperformance.
Yet Cardano’s backers like Input Output Global, Emurgo, and the Cardano Foundation hold substantial ADA reserves they may sell to fund operations. The Cardano Foundation’s annual report shows ADA makes up a large portion of its treasury. As expenses grow, selling ADA may be necessary short term. Â
While concerning prices near-term, Turner says this increased spending demonstrates active development and infrastructure growth that should benefit Cardano long-term. With whale activity recently hinting at a move to $0.7, Turner’s $1 target does not seem unrealistic if macro conditions improve as he expects.
Also Read: Cardano Explodes With 200% Smart Contract Growth in 2023
