Cardano Price Wavers as Hoskinson Provides Prediction of the Next Bull Run

Cardano price today, May 16, trades at $0.784, down a bit from this month's high of $0.862. It remains 52% above its lowest point in April.

The price of Cardano (ADA) has moved sideways this week as the recent crypto market bull run stalled. This retreat has sparked concerns on whether ADA has more upside to erode.

Speaking at the Consensus event, Charles Hoskinson provided the timeline for when Cardano and other cryptocurrencies will resume the bull run.

Cardano Price Remains Flat

The price of Cardano today, May 16, hovers at $0.784, a slight decrease from this month's high of $0.862. However, it's still a 52% rise from its lowest point in April.

At the Consensus event in Toronto, Hoskinson, the founder of Cardano, predicted that the crypto market had entered a bull run. But he added that the industry would experience a "heartburn" period for two to three months due to macroeconomic issues, like tariffs, which would affect the market.

"The overall state of affairs is bullish, it's just that we are not where we need to be yet. There will be about 2 to 3 months of heartburn from macro issues like tariffs. We are in a bull market, but it's going to be choppy for a bit, and then we will have six to twelve months of good, strong, healthy bull market.”

suggest that the crypto bull run will resume after these issues are sorted out. He also believes that it will last for about six to twelve months.

His prediction comes as the summer months, typically June, July, August, and September, witness a decline in activity within the industry. As the chart below shows, these months are usually the worst for Bitcoin and other altcoins, with Bitcoin usually making a strong surge in the last months of the year.

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On the other hand, Hoskinson believes that the next catalyst for Cardano will be the Midnight project, which is now in the final stages of development. Midnight is a zero-knowledge sidechain that aims to provide a secure way for handling sensitive personal data.

One use case for Midnight will be its integration with Bitcoin, enabling BTC holders to generate an annual yield in a safe environment. In a statement, he said that the NIGHT and DUSK tokens will be airdropped to millions of users across eight blockchains, including Cardano.

This airdrop might explain why Cardano whales are accumulating the coin. As the chart below shows, accounts with between 10 million and 100 million coins have increased their holdings to 12.93 billion, up from less than 11.97 billion in January.

ADA Price Technical Analysis Confirms Hoskinson's View

The weekly chart shows that the value of ADA is moving in an upward trend since July 2023. It has remained above the 100-weekly moving average, which has acted as a good support level.

Cardano price has also formed a giant megaphone chart pattern, comprising two ascending and diverging trendlines. The upper side connects the highest swings since April 2023, while the lower ones link the lower highs since July of that year.

Therefore, following the "heartburn" period that Hoskinson mentions, there is a possibility of it dropping to the lower side of the wedge in the next few months, and then resuming the bull run. This analysis implies a potential drop to $0.4 and then a rebound to $2 and above in the fourth quarter.

Summary

Hoskinson believes that the ongoing market noise on tariffs will lead to volatility in the short term and then a strong surge starting in Q3 or Q4. A drop to $0.40 will still imply that Cardano is in an uptrend since it matches with the lower side of the megaphone.

Frequently Asked Questions (FAQs)

1. According to Charles Hoskinson, what is the timeline of a Cardano price bull run?

According to Charles Hoskinson, the crypto market is entering a period of "heartburn" for two to three months due to macroeconomic issues, like tariffs, which will affect the market. After that, he expects the bull run to continue.

2. What is his argument for the industry recovering quickly?

Summer months usually witness a decline in activity within the industry, with June, July, August, and September being the worst months for Bitcoin and other altcoins. However, Bitcoin typically makes a strong surge in the last months of the year.

3. What is the other catalyst for the ADA price rally?

The final stage of the Midnight project, which will introduce a zero-knowledge sidechain for handling personal data in a secure manner. One use case will be its integration with Bitcoin, allowing BTC users to generate an annual yield in a safe environment.