Cardano (ADA) has drawn bullish attention from crypto analyst Ali, who compares its current price movements to its patterns from 2020.
In a recent X post, Ali pointed to ADA’s historical trends as a start for his approach, expressing plans to accumulate more even if the price drops to $0.76. He disclosed intentions to take profits between $4 and $6, signalling high confidence in the cryptocurrency’s long-term potential driven by recurring market cycles.
Historical market cycles mirror current trends
On the weekly chart, Ali noted that ADA recorded major gains following prolonged consolidation phases during previous market cycles. ADA surged over 4,095% after breaking out of a 75% correction zone post-COVID crash. Similarly, the second cycle saw a 2,210% rally during the 2020-2021 bull run, driven by accumulation and recovery.
Currently, ADA is replicating these trends, having emerged from a 65% correction and breaking out from an accumulation phase. Key technical indicators suggest a possible extended rally phase that could propel ADA to new heights by mid-2025 if historical patterns hold.
Market activity and price volatility
As of press time, ADA’s market data displayed heightened volatility, with the token experiencing a decline of 8.04% over the previous day. The price dropped to $1.03, accompanied by an increase of 107.69% in 24-hour trading volume, now at $3.85 billion. This surge in activity likely stems from broader market volatility and increased selling pressure.
The price chart for ADA highlights a steep drop from $1.12, followed by an unstable recovery trajectory. While the decline suggests selling pressure, its circulating supply of 35.1 billion ADA assures market liquidity, keeping investors focused on key support levels.
Technical indicators and liquidation data
According to technical data, ADA’s 4-hour chart shows a 2.42% recovery to $1.014 after a sharp drop from a recent high near $1.40. Bearish momentum remains dominant, with the MACD showing a bearish crossover, signalling weakening price strength.
At the same time, the RSI is reading 28, which means it has entered the oversold zone and could rebound if buying pressure increases. The signal is there, but the recovery still remains fragile, as depicted by the cautious sentiment in the market.
ADA’s liquidation data points to the risks of inverse trading in highly volatile markets. Liquidations sharply increased when ADA’s price fell from $1.40 to below $1.00, with long positions leading the way.
The rapid rise in late November attracted traders to long positions, but they faced heavy liquidations as the price reversed in December.
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