Cardano’s 17% weekly drop could push ADA to $6 this cycle

Cardano's (CRYPTO:ADA) native cryptocurrency, ADA, has experienced a significant price drop in the past week, falling below $1.

Despite the setback, some analysts believe this correction could set the stage for a potential price surge.

Over the past ten days, ADA’s price has plummeted from $1.2 to below $0.8, though it has since regained some ground to settle at around $0.9.

This marks a 25% decline since December 12.

In the broader context, however, ADA’s performance tells a different story.

Prior to the recent correction, ADA had been in a tight range between $0.3 and $0.4 for several weeks.

After the US presidential elections, the asset surged, reaching a multi-year high of over $1.3.

Despite the recent decline, ADA is still up 160% in less than two months.

Analyst Ali Martinez highlights the significance of this correction from a long-term perspective.

He pointed out that ADA’s price movement in the current cycle mirrors its performance in 2020, where a major retracement followed a strong rally.

In that case, ADA went on to surpass its previous all-time high (ATH) of $3.09, and Martinez believes a similar pattern could lead ADA to a new ATH of $6.

A price of $6 would put ADA’s market capitalisation well above $200 billion, making it one of the top three cryptocurrencies by market cap.

At the time of reporting, the Cardano (ADA) price was $0.8694.