Cardano Exhibits Similar Price Action to 2021 Rally – ADA Previously Reached Record Highs During This Pattern

As of April 2025, Cardano (ADA) is demonstrating price movement characteristics strikingly similar to its 2021 bull run. Historical data shows that during the previous instance of this pattern, the cryptocurrency achieved its all-time high (ATH) price levels. Market analysts are observing key indicators such as trading volume, network activity, and institutional interest to determine whether this correlation might signal another potential upward trajectory for ADA. The current market conditions, including regulatory developments and broader crypto market trends, add additional layers of complexity to this technical analysis.

Cardano falls within a consolidation pattern again

Interestingly, ADA’s current weekly chart closely mimicked the structure that led to its 2021 rally.

In 2021, after breaching the supply zone marked by the orange rectangle, the asset returned to this level, consolidated for weeks, and then broke out, reaching $3.10.

Similarly, the current movement closely mirrors that path as it breached the supply zone and is now consolidating within it.

Source: TradingView

If this leads to a rally, the closest target for the asset would be its all-time high of $3.10, a 457% gain for investors buying at the current price.

However, strong market momentum could extend the rally, pushing the asset to $16.

Market accumulation gives the asset a major edge

On top of that, market accumulation has quietly supported ADA’s current consolidation.

Coinglass weekly Exchange Netflow data, which tracks asset inflows and outflows to gauge accumulation or distribution, confirms this trend.

Investors have accumulated ADA for the past seven weeks, purchasing the asset and storing it in wallets for long-term holding.

This group has acquired $379 million worth of ADA—a significant portion of the market—indicating strong interest.

Source: CoinGlass

For context, the ADA purchased during this period represents 1.7% of its current market capitalization of $22 billion.

This implies that this cohort of investors could trigger a supply squeeze, reducing availability and driving up demand.

AMBCrypto analysis took it further by comparing the momentum from this accumulation to the one that led to ADA’s 2020–2021 rally.

Interestingly, between the 7th of September and the 16th of November of the last cycle, when ADA also remained in a consolidation channel, only $9.57 million worth of the asset was accumulated.

This means the current accumulation rate is 39.6 times more than during the previous rally cycle. If accumulation continues to rise, ADA’s rally could surpass its previous all-time high and reach the $16 region.

How’s the market reacting?

Despite the drop in ADA’s price, sentiment remains bullish, even in the derivatives market, as the Open Interest Weighted Funding Rate remains high.

Reading at 0.0086% at press time, this indicates that more long contracts are being opened.

Source: CoinGlass

Continual long bets on lower timeframes will contribute to the asset’s eventual long-term rally, if sustained.