Renowned crypto analyst Guy Turner from Coin Bureau is optimistic about the prospects of Cardano (ADA), hinting at a potential significant upward movement for the smart contract platform. Speaking to his 2.38 million YouTube followers in a recent video, Turner suggests that Cardano, often considered a competitor to Ethereum (ETH), might be forming a bullish pattern that could propel its value by a substantial 74% or more.
According to Turner, the dip in altcoins experienced in October seems to be linked to their correlation with small-cap stocks, which also faced a downturn during that period. The drop in small-cap stocks was attributed to a rapid increase in long-term interest rates. However, since October, these interest rates have declined, leading to a nearly threefold rise in ADA’s price. Turner observes a potential bullish indicator in Cardano’s weekly chart, hinting at the formation of a bull flag. If this pattern materializes, ADA could potentially surge to $1, marking a crucial resistance zone.
Additionally, Turner highlights a bullish signal from a Cardano demand metric related to the total value locked in its DeFi (decentralized finance) protocols.
However, Turner cautions investors about short-term bearish pressure. He attributes this pressure to the substantial number of ADA tokens held by three major entities associated with the project: Emurgo, Input Output Global (IOG), and the Cardano Foundation. According to Turner, these entities appear to sell ADA to fund their operations. He points out that the Cardano Foundation’s annual report revealed a significant portion of its treasury in ADA, implying that the entity has been selling ADA to cover its increasing expenses.
While Turner acknowledges the long-term bullish implications of this development, he emphasizes its short-term bearish impact. Currently, ADA is trading at $0.57, reflecting a more than 2% increase in the last 24 hours.
In summary, Cardano is displaying positive signals for a potential surge, but investors need to consider the short-term bearish pressure arising from substantial ADA token sales by key project entities.