By CCN Markets: Cardano is up by over 105 percent year-to-date as it trades at $0.0903 as of this writing. The cryptocurrency is known to some as the “Ethereum Killer”. It may have already made big gains this year but it appears to just be warming up. We are not alone in this sentiment.
A pseudonymous Twitter account that goes by the name of Beastlorion believes that Cardano is gearing up for a face-melting pump in the next few weeks. The climb comes after the much-anticipated release of the crypto token’s testnet.
The analyst expects to see Cardano make a 117.72% pump over the next month:
Based on the chart attached, the analyst sees Cardano launching a massive rally to $0.197288. Those are gains of over 117% in 26 days. Before this happens, the cryptocurrency must first take out resistance of $0.096353.
Looking at Cardano’s chart, there are reasons to look into Beastlorion’s predictions closely.
Cardano Looks Bullish in Both The Shorter and Longer Time Frames
A closer inspection of the cryptocurrency reveals a massive inverse head-and-shoulders pattern. It is visible both in the daily and weekly charts. The pattern has been in construction for over ten months now. That’s a long time to build a base in the cryptocurrency world.
The length of the base is the primary reason why we agree with the analyst’s forecast that Cardano will likely double in value soon. When an asset breaks out after a long accumulation period, it usually generates tremendous bullish momentum. Hence, it can double or triple its value in a short period of time.
The phenomenon is known as a parabolic run. Bitcoin is currently in the midst of one.
Based on Beastlorion’s tweet, the analyst expects Cardano to launch its own parabolic run once it breaches the neckline of the inverse head-and-shoulders.
The expectation is quite possible considering the cryptocurrency’s extensive base building period. More importantly, Cardano has virtually no resistance above $0.096353 on the longer time frame other than the analyst’s target price of $0.197288.
Therefore, the projection that Cardano will ignite a massive rally after the breakout and more than double its value in less than 30 days isn’t beyond the realm of possiblity. The confluence of events such as the long accumulation period, formation of a reliable reversal pattern, and the lack of resistance above the neckline favors the bulls as well as the analyst’s prediction.
The smart way to go about this trade is to wait for Cardano to clear resistance of $0.096353 and retest it as support. When this happens, the Ethereum Killer is likely to slaughter bears on its way to a “nice 2x pump over the next month.”
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN Markets.