Many view Cardano as undervalued at current market levels, with some highlighting the benefits of leveraging the dip to buy now.
Notably, this belief comes from the Cardano network’s massive potential, its bullish scalability and growth roadmap, and optimistic technical analysis. Analysts are betting on these features, among others, to drive a resurgence that would benefit those who buy right now.
Key Points
- Many see Cardano as undervalued at current market levels, with some highlighting the benefits of leveraging the dip to buy now.
- This belief comes from the Cardano network’s massive potential, its bullish scalability and growth roadmap, and optimistic technical analysis.
- $ADA is down over 90% from its all-time high and 77% from its December 2024 high of $1.32, presenting a good risk-to-reward ratio for investors.
- Cardano usually gains momentum after bottoming at a critical support trendline and rallies to retest an upper resistance level.
- $ADA could rally to between $1.5 and $2 in the next 12 to 24 months, potentially rewarding those who buy now.
- Cardano is at its lowest level ever against Bitcoin, further supporting a recovery.
Cardano at Good Place to Buy
While $ADA has rebounded by 22.7% from its recent lows of $0.22 to the current price, the cryptocurrency is still down 29.6% in the past 30 days and 18% since the start of the year.
Among others, YouTuber Jebb McAfee, aka Crypto Jebb, believes this is a fantastic time to acquire some Cardano. He highlighted several reasons for this sentiment, one of which is his suggestion that $ADA is a great asset at a good price to buy.
He noted that $ADA is down over 90% from its all-time high and 77% from its December 2024 high of $1.32. These current lows present a good risk-to-reward ratio for investors, especially those who believe in the project.
$ADA Following a Pattern: How High from Here?
Meanwhile, Crypto Jebb stressed that Cardano has reached the top of an ascending trendline on the weekly chart. In previous instances, it gained momentum after bottoming at a critical support trendline and rallied to retest the upper resistance level.
For context, Cardano bottomed in December 2022 and, from around $0.23, rallied approximately 100% to the April 2023 high of $0.46. In October 2023, $ADA made a similar move from the lower support, rallying 277% to $0.81 in March 2024. The last instance was in October 2024, when the coin gained momentum off support and bounced 300% from the $0.31 lows to the ascending resistance trendline at $1.2.
The analyst further highlighted the risks and rewards of different $ADA recovery levels. First, he noted that the coin is approximately 40% away from its all-time lows, but that is nothing compared to the rewards of even a mild recovery.
He predicted that Cardano could rally to between $1.5 and $2 in the next 12 to 24 months. If it reaches $1.50, that will represent an 8.52x risk-to-reward ratio and an over 337% increase. At $1.93, $ADA has a risk-to-reward ratio of 11.8x, representing 466% growth from the market price of $0.33 at the time of his analysis.
Cardano Against Bitcoin at Historic Lows
Additionally, Crypto Jebb noted that Cardano is at the lowest level ever seen against Bitcoin. Again, this reinforces his conviction that the coin has a high-risk, high-reward setup.
He noted that each time $ADA bottoms out, it usually rallies against Bitcoin. For context, $ADA rallied 92% against BTC in early 2024 and another 185% in late 2024. A similar move is likely, with a bottoming RSI and an aligning time interval supporting this view.
