Cardano (ADA) completed its first green September in six years, with the currency enjoying a price gain of nearly 8%. This is significant as crypto could enjoy a prolonged recovery in October, leading to more price gains for Cardano.
Cardano records first green September
Cryptorank data shows that Cardano recorded its first green September since its launch in 2017. This raises the possibility of the crypto enjoying an extended recovery as it presents a bullish outlook for ADA. Crypto analyst Plutus also suggested that Cardano could replicate Bitcoin Monthly Returns after its first green September.
Related Reading
He added that crypto could see these positive monthly returns in the coming months as looser monetary policy begins to occur. Cardano mimicking Bitcoin’s historic monthly returns in the final quarter of this year will be huge for the coin, considering that’s when the top cryptocurrency records its most profitable returns.
Specifically, October is historically one of the best months for Bitcoin, as the cryptocurrency has recorded just two negative monthly returns since 2013. Most of its gains have also been in double digits. So October could be huge for Cardano to replicate BTC Monthly Returns.
Meanwhile, while October has historically not been a good month for Cardano, this time is very different, with these monetary easing policies presenting an optimistic outlook for the crypto market. The US Fed’s rate cuts and China’s stimulus package were among the factors that contributed to ADA enjoying a green monthly candle in September. As such, crypto could enjoy a prolonged recovery as these monetary easing policies continue to be implemented.
It is also worth mentioning that the fourth quarter of 2023 was very optimistic for Cardano as it recorded double-digit gains in October, November and December. Similar price gains this fourth quarter will see ADA reclaim $1 and record a new yearly high in the process. This will provide a much-needed boost to the currency considering it has a YTD (YTD) loss of almost 40%.
Other factors supporting a prolonged rally
From a technical point of view, Plutus noted that the current Heikin Ashi monthly candle is green, indicating a change of direction on the cards. The analyst also revealed that the Weekly Gaussian channel, which rose again in February, is still green, suggesting that more impulsive upward moves are on the horizon for Cardano.
Related Reading
Cardano’s fundamentals are also bullish. The testnet for your Midnight Network privacy protocol recently aired. This privacy solution will help developers build decentralized applications that ensure user data is well protected, a move that could attract more users to the network. The network is already one of the most decentralized, in transition to the Voltaire erawhich focuses on community-oriented governance.
At the time of writing, Cardano is trading at around $0.35, down more than 6% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
