Analyst Predicts Cardano (ADA) Rally Could Hit $6 Based on Historic Price Parallels

Analyst Ali predicts Cardano's price could rise 2,210.97%, targeting $6.102 by mid-2025 if historical patterns repeat.

ADA's breakout from a 65-week consolidation phase shows a 75.34% surge, aligning with its 2020 bullish rally structure.

Technical indicators reveal ADA's recovery from oversold levels, with RSI at 32.65 and MACD hinting at a bullish crossover.

Cardano (ADA) is drawing comparisons to its past price behavior, according to analyst Ali. He notes that the cryptocurrency is exhibiting a pattern similar to its 2020 performance. Ali has stated his confidence in the asset's potential, affirming that he plans to accumulate more ADA even if it dips to $0.76. His profit-taking targets range between $4 and $6, showcasing an optimistic outlook on the cryptocurrency's movement

Historic Parallels and Accumulation Phases

Between 2018 and 2020, ADA experienced a prolonged accumulation period marked by minimal price activity. During this 96-week phase, the cryptocurrency moved within a tight range after a sharp market crash.

Source: Ali

This was disrupted by the COVID-19 crash in March 2020, which caused an additional 56.20% decline. Notably, ADA rebounded later in 2020, initiating a massive rally that spanned 49 weeks and recorded a 4,095.73% increase in value, surging from $0.074 to $3.085.

The current market conditions draw notable parallels with 2020’s setup. ADA recently broke out of a 65-week consolidation phase, rising 75.34% from $0.348 to $0.999. This movement suggests similarities to the early 2020 breakout, creating potential for a continuation of this trend. The highlighted projection points to a potential gain of 2,210.97%, targeting $6.102 by mid-2025 if historical patterns repeat.

Key Indicators and Price Movements

Recent trading data reveals ADA's price briefly dropped from $1.20 to $0.90, before recovering to $1.0161. This rapid movement reflects strong bearish pressure followed by renewed buying interest

Immediate resistance now lies between $1.02 and $1.05, while the critical support stands at $0.90. The intermediate support zone around $0.97-$1.00 also remains crucial for sustaining upward momentum.

Technical indicators align with these observations. The Relative Strength Index (RSI) has recovered from oversold levels, now at 32.65. Meanwhile, the Moving Average Convergence Divergence (MACD) suggests weakening bearish momentum, with a potential bullish crossover on the horizon. A significant rise in trading volume during the price drop indicates strong market participation.

Source: TradingView

Future Price Scenarios for ADA

Cardano’s price movement now hinges on key levels. A sustained move above $1.05 could signal a potential retest of $1.20, aligning with a bullish scenario. However, failure to hold above $1.00 might push the cryptocurrency back to $0.90 or lower. If neither direction gains dominance, ADA could consolidate between $0.97 and $1.05, awaiting further momentum for its next significant move.