Crypto-focused YouTube channel Coin Bureau’s host and crypto analyst Guy Turner, in his latest video update, told his subscribers that the price of Cardano (ADA), often touted as a rival to Ethereum (ETH), could rise over 74%. The analyst believes this potential increase will be triggered by a flag formation he has identified on the price chart.
ADA’s Price Expected to Climb Up to 1 Dollar
Closely followed crypto analyst Guy Turner made an optimistic statement about Cardano’s ADA, suggesting that the altcoin could be on the verge of a significant surge, potentially exceeding 74%, and stated:
The altcoin crash seen in October 2023 seems to stem from their correlation with small-cap stocks. The collapse of small-cap stocks was caused by the rapid rise in long-term interest rates. Since October, long-term interest rates have fallen just as rapidly, resulting in ADA’s price nearly tripling.
On the weekly chart, a flag formation appears to be forming. If this formation completes, ADA’s price could be expected to rise to the next significant resistance area of 1 dollar.
The analyst also highlighted that a demand metric for the altcoin has started to rise, stating “The only demand measure giving a bullish signal for Cardano is the total value of assets locked in decentralized finance (DeFi) protocols.”
Warns of Possible Short-Term Decline Due to Three Organizations
On the other hand, Turner warned that there could be short-term downward pressure on the altcoin due to substantial amounts of ADA held by the three main organizations behind the altcoin project: Emurgo, Input Output Global (IOG), and the Cardano Foundation, suggesting that these organizations appear to be selling ADA to meet their financing needs:
It seems that all three organizations are financed by sales of ADA. For instance, the Cardano Foundation’s first annual report revealed that most of its treasury consists of ADA, and considering the increase in staff numbers, it can be assumed that their expenses have also increased.
Indeed, this situation is acknowledged in their 2022 annual report. When you consider that Emurgo and IOG are also likely spending a lot on development and hiring, it shows that much of the selling pressure on ADA could indeed be coming from these three organizations.
While this situation may indicate a long-term rise for ADA, it would not be incorrect to say that the price could fall in the short term.
