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Cardano (ADA) marked a significant milestone by completing its first green September since its inception. The coin enjoyed a price increase of nearly 8%, which could indicate the start of an extended rally in October, potentially leading to further price gains for Cardano.
Cardano Records First Green September
According to data from CryptoRank, Cardano has recorded its first green September since it launched in 2017. This trend suggests a bullish outlook for ADA, increasing the possibility of an extended rally. Crypto analyst Plutus has also indicated that Cardano might replicate Bitcoin’s historical monthly returns following this positive performance in September.
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Source: CryptoRank
Plutus added that with looser monetary policies beginning to take effect, Cardano could achieve these positive monthly returns in the coming months. If Cardano imitates Bitcoin’s historical monthly gains in Q4, it would be significant since Bitcoin often records its most profitable returns during this period.
Specifically, October is historically one of the best months for Bitcoin, with only two negative monthly returns since 2013. Most of Bitcoin’s gains in October have been double-digits. Thus, if Cardano follows Bitcoin’s pattern, October could be very profitable for ADA.
Additionally, while October has not been traditionally favorable for Cardano, the current economic climate is different. Monetary easing policies, such as US Fed rate cuts and China’s stimulus package, contributed to ADA’s positive performance in September. As these policies continue, Cardano could experience an extended rally.
It is also important to note that Q4 of 2023 was bullish for Cardano, with double-digit gains in October, November, and December. If ADA achieves similar gains in this fourth quarter, it could reclaim the $1 mark and set a new yearly high, offering a much-needed boost considering its year-to-date (YTD) loss of nearly 40%.
Other Factors Supporting an Extended Rally
From a technical perspective, Plutus highlighted that the current Heikin Ashi monthly candle is green, indicating a potential directional change. The analyst also mentioned that the Weekly Gaussian channel, which turned bullish back in February, remains green, suggesting more upward momentum for Cardano.
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Source: X
Cardano’s fundamentals are also promising. The testnet for its privacy protocol, Midnight Network, recently went live. This privacy solution will enable developers to build decentralized applications that ensure user data protection, potentially attracting more users to the network. Cardano is already one of the most decentralized networks and is transitioning to the Voltaire era, focusing on community-driven governance.
At the time of writing, Cardano is trading at approximately $0.35, down over 6% in the last 24 hours, according to data from CoinMarketCap.
ADA price at $0.38 | Source: ADAUSDT on Tradingview.com
