Crypto analyst Ali Martinez recently published an interesting thread on social media platform X (formerly known as Twitter) about Cardano (ADA), in which he analyzed historical price trends and compared them with the current market situation. According to him, the 50% price drop in ADA over the past month could be a great buying opportunity, as Cardano seems to be preparing for a parabolic bull run. Let’s take a closer look at his analysis.
In 2019, Martinez says Cardano consolidated within a parallel channel, signaling the end of the bear market. He went on to say that following this stagnation, the ADA price broke out of the channel with a 75% surge, followed by a 56% price correction, which set the stage for an impressive 4,095% bull run.
He also mentions that a similar situation occurred in 2023. Cardano again consolidated within a parallel channel, marking the end of another bear market. After this period of stagnation, the ADA price broke out of the channel with a 72% surge. Now, Cardano is undergoing a 50% price correction.
Martinez believes that while history doesn’t repeat itself, it often rhymes. Per his thread, if this rule holds true for Cardano, investors should prepare for what lies ahead. He adds that the current price correction could be one of the last opportunities to buy ADA at a low price before a new parabolic rise.
Of course, it’s important to remember that past performance does not guarantee future results. Technical analysis is a powerful tool, but it doesn’t provide 100% certainty; as usual, investors should always conduct their own research and weigh potential risks and rewards before making investment decisions.
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On April 18, Frederik Gregaard, CEO of the Cardano Foundation, revealed plans for a new governance structure for the Cardano blockchain, marking a critical development phase. The Cardano Foundation, headquartered in Zug, Switzerland, plays a vital role in overseeing the Cardano ecosystem. It focuses on various functions, including adoption, shaping policy, community expansion, ensuring stakeholder accountability, and fostering partnerships.
Gregaard announced the creation of an interim constitution aimed at laying the foundation for decentralized governance, underlining the importance of community involvement in determining the future of the ecosystem. This constitution encapsulates the core values of the global Cardano community, promoting transparency, openness, and responsible decision-making. It also ensures that every ADA holder has a voice in the ecosystem, making the governance structure inclusive and representative.
Additionally, the interim constitution outlines the rights, privileges, and responsibilities of all ADA holders, developers, and community members, emphasizing a fair voting system to maintain true ownership and participation. Gregaard also discussed the introduction of checks and balances within the governance system, involving delegates, stake pool operators, and a constitutional committee to reflect community will, uphold the constitution, and protect the ecosystem’s integrity.
The governance model is currently in a testing phase, with plans for a final constitution to be developed through global workshops and a constitutional convention in late 2024. These initiatives are intended to engage the community actively in refining governance strategies. Gregaard sees the constitution as evolving with the community and is enthusiastic about the future of Cardano’s governance, highlighting the blockchain’s model as an industry benchmark.
Featured Image via Unsplash
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- Source: https://www.cryptoglobe.com/latest/2024/05/ada-prominent-crypto-analyst-explains-why-now-might-be-the-right-time-to-buy-the-ada-dip/
