Cardano ADA Price Structure Mirrors 2020 With Bulls Eyeing $1.78 Target

Cardano (ADA) is displaying a price pattern reminiscent of its 2020 market cycle, albeit at a slower pace. The cryptocurrency is currently trading around $0.7855 and is in the early stages of what analysts believe could be a significant upward move. Technical indicators and whale accumulation suggest growing confidence in the asset’s potential to break out of its current range.

Ali Martinez, a well-known crypto analyst, noted that ADA has already cleared the 0.382 Fibonacci retracement level near $0.62 and is currently testing the 0.5 level close to $0.85. In 2020, surpassing this level triggered a rapid rally toward $3.10. While the current movement is slower, the structure is eerily similar, and Martinez has marked a potential turning point on the chart [1]. He stated that if the pattern repeats, ADA could see price targets of $1.15 and $1.78 before potentially challenging its all-time high.

Whale activity has also intensified recently, with large investors accumulating over 200 million ADA tokens in just 48 hours. These purchases occurred as the price rose from approximately $0.74 to $0.82 before experiencing a slight pullback. Whale accumulation is often seen as a bullish sign, indicating large holders are preparing for a potential price surge. The buying coincided with ADA approaching the $0.80 resistance level, a key threshold that has been in focus for months [1].

Open interest in ADA futures has also increased, according to data from CoinGlass. From $1.20 billion on August 3, open interest has climbed to $1.44 billion as of the latest data. This rise, along with positive funding rates, suggests growing trader optimism about ADA’s potential for upward movement. The relative strength index (RSI) is currently at 63, indicating that while ADA is not yet overbought, there is still room for further gains before reaching that level.

Analysts are watching key support levels at $0.784, $0.769, and $0.755, with historical data showing buyer activity in these ranges. If ADA can hold these levels, the short-term target is expected to be the $0.852–$0.87 range. Additionally, recent developments in the Cardano ecosystem, including the Hydra scaling protocol upgrade and the Midnight Network token airdrop, could further drive adoption and usage of ADA in the long term.

A daily close above $0.85 is seen as a potential confirmation for a larger bullish move. If ADA can break through and sustain that level, it could signal the beginning of a new upward phase. The slower pace of the current cycle does not diminish its significance but rather suggests a more measured and potentially longer-lasting buildup of momentum [1].

Source: [1] Cardano Whales Load Up as ADA Price Structure Mirrors Previous Cycle (https://captainaltcoin.com/cardano-whales-load-up-as-ada-price-structure-mirrors-previous-cycle/)