Cardano’s (ADA) “Dead Coin” Narrative Might Be Fading Amid Bullish AI Prospects

LUCKNOW (CoinChapter.com)—Cardano (ADA) has faced intense scrutiny recently. ADA, the project’s native token, experienced some intensely bearish phases, which led some to declare it a “dead coin.”

However, the narrative is shifting. Recent developmental activities and promising technical patterns suggest that ADA’s downturn might be a temporary setback rather than a terminal decline.

For instance, analysts like Nick Black have projected a bullish future for Cardano, arguing that the coin could reach $5, fueled by its strong performance in development and technical indicators.

Despite the prevailing bearish sentiment, Cardano remains one of the top 10 cryptocurrencies by market cap, indicating its resilience. The recent uptick in open interest and the negative MVRV (Market Value to Realized Value) levels further support the notion that ADA could be nearing a market bottom.

The shift in sentiment aligns with the broader narrative that Cardano’s story is far from over.

Hoskinson’s AI Vision: A Bullish Cue for ADA?

Charles Hoskinson’s recent keynote at the Ai4—Artificial Intelligence Conferences 2024 could provide a significant bullish catalyst for ADA. Hoskinson discussed how integrating AI and blockchain could revolutionize industries like healthcare by implementing electronic health record systems (EHR) and creating decentralized marketplaces for data and computation.

Blockchain’s potential to serve as an incentive and trust layer in AI-driven ecosystems could drive demand for ADA, as Cardano is poised to play a crucial role in this emerging landscape.

However, Hoskinson’s vision for AI and blockchain integration remains compelling. Yet, the broader market’s enthusiasm for AI-related projects has shown signs of cooling. This could limit ADA’s immediate upside, though its long-term potential remains strong.

As the AI and blockchain sectors continue to evolve, ADA’s role in this intersection could be a key factor in its future price performance.

Technical Setup Adds To Bullish Cues

Meanwhile, the ADA USD pair has formed a bullish technical setup called the ‘falling wedge.’

The pattern typically indicates that an asset’s price, while in a downtrend, is losing bearish momentum and may be getting ready for an upward reversal. In the case of a falling wedge, the expected breakout generally follows the prevailing trend, which, in this scenario, is upward.

To estimate the price target for a falling wedge, traders typically measure the widest part of the wedge at its inception. Traders then project upward from the breakout point, establishing a potential price target.

A surge in trading volume accompanying the breakout often confirms its validity. Higher volume suggests stronger market conviction, increasing the probability of a sustained price reversal.

Applying these principles to the ADA/USD pair, technical analysis suggests a potential rally of up to 139% from the current price level, targeting a theoretical price near $0.77. A rally to the upper trendline of the pattern would likely attract more buyers as market participants anticipate a bullish breakout.