Cardano fans could be giddy with excitement as the well-liked coin, ADA, suggests that it could see remarkable double-digit increase in the coming month. According to CryptoRank, an examination of ADA’s past price data suggests an intriguing pattern that may see a 36.6% increase in February.
When ADA’s performance from 2018 is examined, the data reveals a notable average profitability of 36.6% in February. But a deeper look reveals an important detail: this outstanding average is heavily distorted by the extraordinary 277.9% price increase of ADA in February 2021.
After removing this anomaly and taking into account the negative patterns from 2019 and previous years, the consensus estimate of Cardano’s profitability in February is a much lower -9.5%.
Although it is evident that the price of ADA tends to decline in February, the aberration that was noticed three years prior raises the possibility that history is not always reliable. From a wider angle, it is important to recognise the constraints associated with extrapolating findings from Cardano’s very little history—the company only joined the market at the close of 2017—and make conclusions accordingly.
The validity of historical patterns for cryptocurrencies is a topic of debate among analysts and investors, particularly in light of the small sample size and the relatively new age of the tokens.
For holders of ADAs, the question of whether history will repeat itself or if the oddity of 2021 was an isolated incident looms large. All eyes are on Cardano as the community excitedly anticipates February, and if past trends continue, there is a good chance that the cryptocurrency could expand by 36%.
