The Cardano price is in a rebound phase amidst a bull flag setup, following an extensive ADA drawdown to as low as $0.7659 over the past week.
The price of Cardano (ADA) has incorporated the “Santa rally,” a trend that has captivated investors following a week of significant volatility. The coin’s price plummeted to a four-week low of $0.7659 earlier, subsequently entering a brief consolidation period. The digital currency is expected to capitalize on its bull flag configuration to experience a significant increase in value following the most recent bullish surge.
Future Projections and the Price of ADA
The ADA was trading at $0.9412 at the time of writing, representing a 6.66% increase in price. There are numerous reasons to concur with the ADA bull flag formation, as per market analyst @Av_Sebastian. He displayed an ADA/USD 1D chart that indicates that Cardano is poised to break out at approximately $0.93.
It is important to note that this price level has served as a formidable resistance for ADA in the past week. The ongoing rally represents a substantial advancement, as only a handful of attempts have surpassed this threshold during this time. The bull flag is a technical setup established during periods of consolidation within an uptrend.
Cardano may eventually surpass the $1 price mark in the short term if it concludes with a bullish candle on the daily chart. This projection is consistent with the previous ADA price analysis, in which top analysts predict a range of $2.60–$2.80 based on Elliott Wave projections.
Is Cardano being undervalued?
Known as an Ethereum killer, Cardano is a Proof-of-Stake (PoS) protocol. Many perceive the coin as undervalued, particularly in light of its expanding role in the Decentralized Finance (DeFi) ecosystem.
The protocol and its founder, Charles Hoskinson, continue to face an increasing backlash; however, the initiative to expand continues. Hoskinson recently suggested that the Cardano Foundation relocate to Wyoming or Abu Dhabi to promote community governance.
The protocol has made substantial progress in democratizing its governance systems due to the Chang hard fork upgrade. ADA is an appealing coin for long-term growth due to this, as well as alliances such as the Bitcoin DeFi push.
