Cardano price can rise 450% if this historical pattern is repeated

Cardano (ADA) seems to be preparing for a new advance. Although the price fell by 12% last month, the current price trend has strong similarities with the pattern that preceded the 2021 rally. Then Ada explosively rose to an all-time high of $ 3.10. Will history repeat itself?

Recognizable consolidation pattern

In recent months, Ada had not been impressive for Ada, but those who zoom out will see a more interesting picture. The weekly graph shows that Ada broke through an important resistance zone in November. Since then, the ADA Course within the same zone, where the former resistance level is now being tested as support. This is exactly the pattern that also occurred in 2020 – just before an increase of 4000% towards $ 3.10.

If Ada follows this pattern again, the first price target is again at the same level. That would mean an increase of more than 450% compared to the current price.

Strong accumulation points to trust

Not only the technical analysis points to potential. Fundamentally, the confidence in Ada also seems strong. Data from Coinglass shows that there has been considerable accumulation for seven weeks in a row. In total, no less than $ 379 million was bought in ADA, accounting for 1.7% of the total market capitalization of $ 22 billion.

For comparison: in a comparable phase in 2020, only $ 9.57 million was accumulated to ADA. The current buying pressure is therefore almost forty times higher, which may lead to scarcity and upward price pressure. It is good to state that the price was then considerably lower than now.

Positive derivatives sentiment

Sentiment is also predominantly positive on the derivatives market. The Open Interest Weighted Funding Rate is 0.0086%, indicating a preference for lung positions among traders. This indicates that many market parties count on a further increase in the course.

Although Ada is still in a consolidation phase, both technical and fundamental indicators indicate the possibility of repeating the price movement from 2021. With strong accumulation and positive market sentiment, confidence in a new prize breakdown seems justified. Nevertheless, caution remains required: the cryptomarkt remains unpredictable.