As an enthusiastic cryptocurrency investor, I have recently noticed that many analysts have a predominantly negative outlook on Cardano (ADA). However, I believe that despite the current market challenges and a decrease in on-chain activity, ADA still has the potential to reach $6.
Currently, the price of ADA is $0.3604, down 12% from its peak a month ago. Although Bitcoin's price has soared above $71,000, ADA's performance has been somewhat lackluster, with a daily increase of only 2.82%. As an ADA holder, this situation undoubtedly makes me uneasy.
However, studying ADA's historical patterns has ignited a glimmer of hope in my heart. After experiencing a 672-day consolidation period, ADA began its last major bull market on November 16, 2020. During that bull market, ADA's price skyrocketed by 4,095%, rising from about $0.09 to a historical high of $3.10. Although ADA's price has been declining for 455 days since then, the recent pullback has made me start to reflect on future trends.
Earlier this year, ADA had briefly surpassed $0.80, but has since fallen by 65%. If ADA can replicate historical trends, the price could soar to $6.50. However, market skepticism about ADA's future is growing, especially with the strong performance of new competitive altcoins, making it seem difficult for ADA to keep pace.
Additionally, the report from IntoTheBlock has raised my concerns. They pointed out that Cardano's NVT ratio has surged to its highest level since June, indicating a relative lack of on-chain activity. This valuation signal suggests that without sufficient on-chain participation, ADA may struggle to maintain upward momentum.
In such a market context, can ADA really achieve the $6 target, or will it be forced to pull back amid fierce market competition? This is undoubtedly a focus for me to observe in the future. What do you think?
