Cardano Rebound Flashes Similarity With 2020/2021 Cycle

A recent analysis has drawn similarities between the current ADA/BTC trend and the 2021 cycle, suggesting that Cardano could see greater highs.

In the past 24 hours, ADA has pulled back by nearly 6%, taking its seven-day decline to 20.2%. Data further identifies a 25% retracement over the past month, with its year-to-date performance standing at a negative 19%.

Meanwhile, a breakout ensued around July 2020, with ADA breaking out against BTC and pushing the descending trendline. The outburst ensured that Cardano outperformed Bitcoin, rallying to its cycle top of $3.10 while the ADA/BTC chart topped at 0.00006271 by September 2021.

The chart shows that a similar pattern is repeating. After the 2021 top, ADA regressed against Bitcoin within another descending trendline until its lows of 0.00000470 in November 2024. Cardano’s bullish price action in November prompted a breakout from the resistance trendline to the top of 0.00001380 in early December.

ADA/BTC Chart## Cardano Could Follow Past Price Action

Now, ADA is retesting the trendline breakout, a pattern it observed in 2020 before the final rally. If Cardano receives similar momentum from the 2020 breakout, then it could see more upside.

The chart shows a possible surge from the current price of 0.000006 to 0.000050, which would boost the price of ADA to $5.5 at the current BTC price of $110,855. Meanwhile, at Bitcoin’s all-time high of $126,220, this could culminate in a Cardano price of $6.3.

Notably, while ADA did not reach its 2018 highs against Bitcoin in 2021, it still managed to make a new all-time high. This analogy suggests that the token could still reach unprecedented prices even if it doesn’t reach its 2021 high against BTC.

Nonetheless, this depends solely on the performance of Bitcoin. It also bears mentioning that a growing ADA/BTC chart does not mean that Bitcoin is in a bearish trend. It only implies that Cardano is performing better.

Remarkably, the chart shows a massive decline in trading volume between the 2021 bull cycle and the current market condition. The discrepancy, among others, raised doubts over the possibility of a repetition.