After experiencing a sharp 43% correction, Cardano (ADA) may be on the verge of its next major price surge, reminiscent of its explosive rally in early 2021. Historical price patterns indicate that ADA has often followed significant corrections with strong upward momentum, and analysts are now predicting a potential breakout that could push ADA toward $6 in the coming weeks.
Cardano: A Repeat of Early 2021?
At the time of writing, Cardano (ADA) appears ready to make a major move upward. In early 2021, ADA underwent a similar 44% correction, which was followed by an astonishing 4,000% rally. Analyst Ali Martinez has pointed out a striking similarity to the current market structure, with ADA already enduring a 43% pullback. If history is any guide, this could mark the beginning of ADA’s next bull run, with $6 becoming a viable target in the near future.
After a 44% correction, #Cardano $ADA began its second leg up during the week of February 1, 2021. Now, #ADA has already undergone a 43% correction, suggesting the next leg up could be just two to three weeks away. $6 next! pic.twitter.com/xyvwZxdOFf
— Ali (@ali_charts) January 17, 2025
Technical Setup and Strong Support
The technical setup for ADA suggests that the cryptocurrency may be poised for a strong recovery. Fibonacci retracement levels and robust support zones strengthen the case for another significant rally. If these technical indicators hold, ADA’s upward momentum could mirror its performance from early 2021, when it reached new all-time highs.
The 43% Correction: A Sign of Accumulation?
While a 43% correction may sound concerning to some, ADA’s historical performance suggests that such pullbacks often signal accumulation rather than a prolonged decline. Following similar corrections in the past, ADA has shown resilience and rallied stronger. Thus, the current market phase may be indicative of a buying opportunity for investors.
On-chain data also supports the case for a bullish scenario. Whale transactions exceeding $100,000 and $1 million have surged, signaling strong accumulation by institutional investors. Additionally, daily active addresses and social volume for ADA have increased, pointing to rising market interest. While these signs are promising, traders must carefully assess whether this reflects genuine demand or speculative excitement.
A $6 target for ADA may seem ambitious, but considering the cryptocurrency’s historical trends and current market conditions, it is within the realm of possibility. If ADA continues to show strong support and accumulation, coupled with a positive market sentiment, a significant rally could emerge in the coming weeks. However, broader market trends and investor confidence will be key factors in determining whether ADA can hit the $6 mark.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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