Crypto analyst Ben Armstrong shared his insight on his channel and made an optimistic projection regarding Cardano (ADA), suggesting a potential surge of 44% in the medium term. Additionally, they speculate that ADA’s price could reach $5 in the next bull cycle.
In their video analysis, the analysts observed that the S&P 500 index initially broke below a positive trend line on its charts but subsequently managed to recover and trade above the trend line at the time of writing.
S&P 500 Recovery and Cryptocurrency Market Outlook
While acknowledging that the S&P 500 and the cryptocurrency market do not exhibit strong correlation, the analysts pointed out that positive movements in the traditional stock market tend to enhance the likelihood of price increases in the cryptocurrency sector.
Therefore, the recent recovery of the S&P 500 could potentially trigger a strong upward movement in ADA’s price.
Analyzing ADA’s Chart Patterns and Divergence
Simultaneously, they identified a medium-term descending triangle formation on ADA’s charts, suggesting that the altcoin’s price might continue its downward trajectory if it breaches the base of this chart pattern. Notably, ADA has repeatedly tested this support level, approximately at $0.2375, with bullish support preventing further declines.
The analysts highlighted a bullish divergence on ADA’s charts. Specifically, at the time of their video publication, ADA’s RSI indicator displayed higher lows while the coin’s price remained relatively stable. This bullish divergence unfolded over the past few days, resulting in ADA breaking out of a significant bearish chart pattern.
Due to these developments, ADA could move toward the $0.37 target mentioned in the video. However, ADA was trading at $0.25 at the time of writing, indicating that such a move might not be imminent.
Looking ahead from a long-term perspective, the analysts have predicted that ADA could experience a substantial increase, potentially reaching $3 during the next bull cycle.