Cardano Nears End Of 2020-Style Correction: Is $5 To $10 Next?

Cardano (ADA) appears to be near the end of a corrective wave within a long-term channel. Market analyst Quantum Ascend has drawn attention to a potential reversal as the cryptocurrency nears a key support level. This pattern bears similarities to the 2020 correction, where ADA reached a low of $0.017 before rebounding.

Technical indicators suggest a bullish momentum is forming. The weekly Stochastic RSI has shown a pattern historically associated with price rallies, similar to what occurred in 2020. Additionally, the MACD is signaling bearish exhaustion, with red bars receding and a potential bullish crossover on the horizon.

Analysts are also monitoring ADA's movement within a wedge formed by a channel spanning since 2018. A rebound from the lower support level of this wedge suggests strength, and a potential E-wave rally could drive the price toward $10.40.

Why Did This Happen?

Cardano's price action has drawn comparisons to its 2020 correction. In that year, ADA retraced to the lower support of the same wedge, after which it rebounded sharply to an all-time high of $3.10. The current correction appears to be mirroring that pattern, giving analysts confidence in a potential upward reversal.

Quantum Ascend noted the completion of an ABC correctional move, which increases the conviction that the bottom is near. The ongoing rebound is viewed as the beginning of a new bullish phase, potentially leading to all-time highs.

How Did Markets React?

The broader crypto market has remained cautious, but ADA's specific pattern has generated optimism. The Stochastic RSI is beginning to move upward, signaling a possible push in line with historical trends. The market watcher also highlighted that the MACD is showing bearish exhaustion, reinforcing the case for a reversal.

What Are Analysts Watching Next?

Analysts are focusing on several key signals. A bullish crossover in the MACD would confirm reversal momentum and could trigger an E-wave rally. The weekly Stochastic RSI is also expected to play a role, as it historically preceded a price rally to $3.10 in 2020.

In a conservative scenario, ADA could rise to $5, representing a 12x increase from its current market price of $0.39. Even if the bullish case doesn't fully materialize, this level would still mark a significant gain for long-term holders.

Meanwhile, institutional activity in the retail sector, particularly at Target Corporation (TGT), shows mixed signals. Institutional investors recently sold 63,882 shares of TGT stock. Analysts have issued a mix of ratings, with some maintaining a cautious stance and others projecting price targets above $100.

Target's recent expansion of its wellness product line by 30% has drawn attention, but its stock performance remains under pressure. The company reported a net income of $689 million in the latest quarter. Its debt-to-equity ratio stands at 132.06%, and its beta of 1.46 indicates higher volatility compared to the market.

Investors are advised to monitor both Cardano's technical indicators and broader market sentiment. The crypto market is highly volatile, and while ADA's pattern suggests a potential reversal, it is not a guaranteed outcome.