Cardano's 15% Weekly Gain: A Bullish Fractal Unveiled

Cardano (ADA), one of the day's standout crypto performers, has seen a strong 15% return this week. The altcoin dropped to $0.05 on Feb. 3 but has since recovered to $0.78 and is attempting to close above its immediate weekly support of $0.73. While the crypto asset remains 75% below its all-time high value of $3.09, a favorable technical pattern is taking shape.

Cardano's weekly market structure in 2025 mirrors a setup from 2020, which led to its 3,375% rally in the previous bull run. After reaching an all-time high of $1.31 in 2018, ADA dropped by over 97% during the bear market, a feat repeated in the 2022 bear market as well. Following that, a prolonged accumulation phase occurred during both periods, where prices tested the upper and lower ranges of the region. Once the upper range of the accumulation region was breached, it was flipped as support and tested again before the altcoin witnessed a parabolic rally. As observed, ADA is currently in this phase of the fractal in 2025, where the crypto asset can break away to retest its previous all-time high within the next 140-180 days.

The similarity between the 2021 and 2025 market structure increases the probability of a similar outcome for Cardano. This could lead to a 350% price rise before 2025, targeting its previous all-time high of $3. Data from Santiment, an analytics platform, highlighted that Cardano addresses holding more than 1 million ADA tokens have slowly accumulated more than 1.41 billion tokens over the past 15 months. The accumulated total accounts for 2.35% of the total circulating supply, which implies that whales have long-term convictions on the altcoin. Similarly, the recent rally also improved social chatter or discussions for Cardano.

On the lower time frame (LTF), ADA's price shows a bullish pennant formation. A confirmed breakaway from the pattern could produce a rally that is 25% from its current price, testing its psychological level at $1 over the next few weeks.