Cardano (ADA) has marked its first positive September in six years, with the coin appreciating nearly 8%. This milestone is particularly noteworthy as it opens the door for an extended rally into October, potentially driving further price increases for Cardano.
Data from Cryptorank confirms that Cardano has recorded its first “green September” since its inception in 2017, signaling a bullish outlook for ADA. Crypto analyst Plutus posits that Cardano could follow Bitcoin’s historical monthly performance after similar early gains, suggesting that ADA might replicate the leading cryptocurrency’s trend of robust returns in the months to come.
Plutus also indicated that the current loosening of monetary policies could favorably impact these monthly returns. If Cardano continues to mimic Bitcoin’s historical gains, especially in the final quarter of the year—when Bitcoin has often been most profitable—it could signify a major boon for ADA.
October looms large in this equation. Historically, it has been one of Bitcoin’s most lucrative months, with only two negative returns since 2013 and most gains being in double digits. If Cardano can echo Bitcoin’s October performance, it could experience significant growth. Although October has not traditionally been favorable for Cardano, the current economic climate—with U.S. Federal Reserve rate cuts and China’s stimulus package—offers a bullish backdrop that could yield an extended rally for ADA.
The fourth quarter of 2023 is already showing promise for Cardano, boasting double-digit gains in October, November, and December last year. Such gains this quarter could see ADA climbing back to $1 and potentially reaching a new yearly high, much needed given its year-to-date loss of almost 40%.
Technically, Plutus emphasized that the current Heikin Ashi monthly candle appears green, signaling an impending shift in direction. Moreover, the Weekly Gaussian channel, which has been bullish since February, continues to show green, suggesting more upward momentum for Cardano.
Fundamentally, Cardano is also strong. The testnet for its privacy protocol, Midnight Network, has just launched, offering developers tools to build decentralized applications with robust data privacy. This advancement could draw more users to one of the most decentralized networks, which is transitioning into the Voltaire era focused on community-driven governance.
As of now, Cardano is trading at approximately $0.35, having dropped over 6% in the last 24 hours, according to CoinMarketCap data.