Cardano (ADA) is flashing familiar signals, with its current price action mirroring an earlier bull cycle that led to massive gains.
Specifically, renowned cryptocurrency analyst Ali Martinez highlighted a striking similarity between ADA’s 2020 rally and the current market structure, suggesting that a surge to $6 could be on the horizon, he shared in an X post on December 22.
In 2020, ADA experienced a steep correction following the initial breakout from its accumulation phase. The first significant dip during ADA’s uptrend occurred at almost the same point in the cycle as the current correction.
What followed that correction was a 4,095% rally, taking ADA from under $0.10 to an all-time high above $3 by August 2021. In 2024, Cardano appears to be repeating this pattern. After breaking out from a lengthy accumulation phase, ADA’s price retraced by around 42%, similar to its 2020 pullback.
ADA price analysis chart. Source: TradingView/Ali_charts
Therefore, if history repeats itself, ADA could climb as high as $6, reflecting an increase of about 560% from the asset’s current valuation.
Such a price target would likely put Cardano’s market cap at almost $210 billion, placing it in the third spot among assets with the highest market cap, provided other cryptocurrencies record minimal growth.
Martinez initially noted that Cardano could hit the $6 mark between July and September 2025.
At the same time, pseudonymous trading expert Kenshiyesreel, in an X post on December 22, observed that ADA would likely target $4 as the next major resistance zone.
Based on market structure analysis, the asset appears to have transitioned from an accumulation phase into a markup phase, signaling rising demand and bullish sentiment.
The $4 price level coincides with the distribution zone, where overbought conditions may arise.
ADA price analysis chart. Source: TradingView
Cardano’s fundamentals
Cardano’s ongoing efforts to enhance decentralization may support ADA’s price recovery. Notably, founder Charles Hoskinson envisions a fully decentralized blockchain governance model that includes all users and token holders.
To achieve this, Cardano seeks to finalize a community-ratified constitution and secure approval for its budget system, positioning the platform as a leader in the decentralized revolution.
The push for decentralized governance could reinvigorate investor confidence and drive ADA’s long-term price potential.
With the Chang Hard Fork in September 2024 setting the stage for these changes, the ongoing transformation might signal a pivotal growth catalyst for the platform and its native token.
ADA price analysis
By press time, ADA was trading at $0.89 with daily losses of about 0.92%. The decentralized finance (DeFi) asset has plunged almost 18% on the weekly timeline.
ADA seven-day price chart. Source: Finbold
Although ADA is facing a correction soon, there is still room for regaining bullish momentum, considering the price sits above the 50-day simple moving average (SMA) of $0.8519 and the 200-day SMA of $0.493, signaling strong upward momentum. With a 14-day RSI of 44.54, ADA is in neutral territory, neither overbought nor oversold, with $1 as the next key resistance target.
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