Cardano (ADA) Completes First Green September in Six Years, Could Replicate Bitcoin's Monthly Returns

This is significant as the crypto could enjoy an extended rally in October, leading to more price gains for Cardano.

Cardano (ADA) price enjoyed a directional change in September, closing the month in the green for the first time in six years. This bullish development raises the possibility of an extended rally for ADA in October, setting the stage for further price gains.

According to data from Cryptorank, Cardano has recorded its first green September since its launch in 2017. This development presents a bullish outlook for ADA, increasing the likelihood of an extended rally. Notably, crypto analyst Plutus suggests that Cardano could replicate Bitcoin's monthly returns following its first green September.

The analyst further highlights that the crypto can achieve these positive monthly returns in the coming months as looser monetary policies are being implemented. If Cardano manages to imitate Bitcoin's historical monthly returns in the last quarter of this year, it will be significant for the coin, considering that this is when the flagship crypto records its most profitable returns.

Specifically, October has historically been one of the best months for Bitcoin, as the crypto has only recorded two negative monthly returns since 2013. Moreover, the majority of its gains have been in double-digits. Therefore, if Cardano replicates BTC's monthly returns, October could be huge for ADA.

While October has historically not been a good month for Cardano, this time is much different, with these monetary easing policies presenting a bullish outlook for the crypto market. Among the factors that contributed to ADA enjoying a monthly green candle in September were the US Fed rate cuts and China's stimulus package. As these monetary easing policies continue to roll out, the crypto could enjoy an extended rally.

It is also crucial to note that Q4 of 2023 was very bullish 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 for the coin, considering it boasts a year-to-date (YTD) loss of almost 40%.

From a technical perspective, Plutus points out that the current Heikin Ashi monthly candle is green, indicating a directional change on the cards. The analyst also noted that the Weekly Gaussian channel, which flipped bullish back in February, is still green, suggesting that more impulsive moves to the upside are on the horizon for Cardano.

On the other hand, Cardano's fundamentals also appear bullish. The testnet for its privacy protocol Midnight Network just recently went live. This privacy solution will enable developers to build decentralized applications that ensure that users' data are well protected, attracting more users to the network. The network is already one of the most decentralized, transitioning to the Voltaire era, which focuses on community-driven governance.

At the moment, Cardano is trading at around $0.35, down over 6% in the last 24 hours, as reported by CoinMarketCap.