Crypto analyst Guy Turner from Coin Bureau has predicted a potential 74% surge in Cardano’s (ADA) price, triggered by a flag formation on the price chart. Turner’s analysis points to a promising future for ADA as its price has already nearly tripled since the correlation-caused altcoin crash in October 2023, which was linked to the collapse of small-cap stocks due to rapidly rising long-term interest rates.
Turner notes that the weekly chart shows a flag formation, and if this pattern completes, ADA could rise to the next major resistance level of $1. Additionally, he highlights a demand metric for Cardano, specifically the total value locked in decentralized finance (DeFi) protocols, which signals an uptrend for the altcoin.
However, Turner cautions that short-term price declines could occur due to the significant ADA holdings of the three main organizations behind the altcoin project: Emurgo, Input Output Global (IOG), and the Cardano Foundation. These entities appear to be selling ADA to meet financial needs, which could create downward pressure on prices in the short term.
The Cardano Foundation’s annual report reveals a treasury primarily composed of ADA and increased staffing costs, suggesting higher expenditures. Similarly, Emurgo and IOG are likely spending heavily on development and hiring, contributing to the selling pressure on ADA.
While this situation indicates a potential long-term bullish trend for ADA, Turner warns that it could lead to a short-term price drop, cautioning investors about possible fluctuations.