Is $24 a realistic target for Cardano in the current bullish cycle?

• Here’s why a $24 price tag is possible but not probable in the next bull run.
• ADA bears lose grip over the cryptocurrency as bullish hopes take over.

What if Cardano’s native cryptocurrency ADA could rally past the $20 price level? There is growing sentiment that crypto winter is over and the next bullish phase is here. As such, many analysts are tossing in their predictions.

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One of those predictions suggests that ADA could push as high as $24 at the height of the recently started long-term rally. For context, the same cryptocurrency has only peaked at slightly above $3 with over $91 billion in market cap.

Is $24 a realistic price target?

First things first, it is worth noting that some crypto price predictions in the past appeared absurd until they became reality. That being said, let’s consider what it would take for ADA to soar to the predicted $24 price tag.

ADA would need a market cap of over $870 billion for its price to rally all the way to $24. That is roughly 9.5 times its market cap at the height of the last bull run. That would be quite a tall order for Cardano but certainly not impossible in a scenario where it achieves mass adoption.

Cardano currently has a $10 billion market cap which means it has an incredibly long way to go before reaching the $870 billion target that it needs to achieve the $24 price tag. Some might view this as an unrealistic target for now.

What is a more realistic target for ADA?

Prices of major cryptocurrencies tend to double or even triple at every subsequent cycle peak compared to previous bull runs. If that turns out to be the case during the next bull run, then traders can expect the next peak at around the $6 to $8 price range

ADA’s short-term performance is already conforming to the bullish outcome after bouncing off its long-term support. It exchanged hands at $0.293 at press time, which is a roughly 22% gain from the support level.

Source: TradingView

Here’s some interesting observation that has been taking place for the last few weeks. Open interest in ADA has been shifting in favor of the cryptocurrency. The number of sell positions has dipped considerably compared to what we saw at the start of October.

Source: Hyblock Capital

Read about ADA’s price prediction for 2024

Buy positions appear to have remained consistent during the same period, suggesting that the current bullish wave was fueled by bears losing interest. Nevertheless, there was a bit of an uptick in bullish volume since Monday this week.

Source: Santiment

ADA’s profitability is now up to a 4-week high according to the MVRV ratio. The bulk of its upside was observed within the last 7 days, indicating that there was a strong demand wave during the same period.