Cardano’s ongoing price cycle has similarities to 2020, which saw a massive rally after a prolonged correction.
Current market trends indicate ADA’s price could increase if historical patterns continue to play out.
Analyst Ali suggests Cardano may be positioning for a breakout, but timing this move could take weeks or months.
Cardano (ADA) is showing patterns similar to its 2020 market cycle, according to a detailed analysis by Ali (@ali_charts). His insights reveal ADA's current price movements closely resemble its behavior in 2020, raising questions about whether another explosive rally to $6 is possible.
Source: Ali Charts
The 2020 Cycle: From Collapse to Important Growth
In 2020, Cardano experienced a price drop during the COVID crash, declining by 56.26% over a period of weeks. This correction initiated a prolonged consolidation phase lasting 96 bars, which equals roughly 672 days, and involved a trading volume of 89.8 billion ADA.
Following the consolidation, ADA began a major breakout on November 16, 2020, that sparked an unprecedented price rally. Over the next several months, the price surged by 4,095.73%, eventually peaking at $3.085 by August 30, 2021. This cycle demonstrated how major corrections followed by long consolidation periods often result in exponential price movements.
The 2020 phase set a precedent for ADA’s market behavior, highlighting the potential for high growth after periods of accumulation. Ali’s analysis suggests this historical pattern may offer clues to ADA’s current cycle.
2023-2024 Cycle: A Familiar Trend Emerging
Ali’s chart identifies striking similarities between ADA’s current price movements and its trajectory in 2020, sparking significant attention from traders. The ongoing cycle began with a steep correction of 65.95% and transitioned into another consolidation phase lasting 66 bars, equal to 456 days, with 60.9 billion ADA traded.
After this consolidation, ADA experienced a breakout with a 75.54% price increase, closely mirroring the early stages of the 2020 cycle. This price movement aligns with previous patterns, suggesting that the cryptocurrency may be setting up for another significant rally.
Ali’s analysis speculates that ADA could potentially reach $6 if the historical trend continues. While the market is closely watching these developments, only time will confirm if this breakout leads to a similar surge.
Will Cardano Repeat Its Historic Rally?
Ali notes that ADA’s first major correction in the current cycle occurred around the same time as it did in 2020. This correlation between timelines raises questions about whether ADA will repeat its past success and rally to new highs. However, Ali also emphasizes that price movements of this magnitude may take weeks or months to materialize.
His insights provide a valuable perspective for traders analyzing ADA’s potential, offering a framework to anticipate its next major move.
The post Cardano’s Price Patterns Suggest Another Rally Could Be on the Horizon appeared first on Crypto News Land.
