Is Cardano (ADA) Coiling Up for Another Mega Run? Chart Mirrors Pre-2021 Bull Run

Date: Sat, April 05, 2025 | 07:12 AM GMT

The cryptocurrency market has been struggling with an extended correction phase, where Ethereum (ETH) itself recorded its worst Q1 decline since 2018—down nearly 45%. This widespread weakness has added heavy pressure on altcoins.

Among the major altcoins, Cardano (ADA) hasn’t been spared. The token has dropped 39% over the last 90 days, wiping out a significant portion of investor confidence. But despite the recent dip, ADA might be quietly preparing for a major move. A closer look at its chart shows a familiar pattern that previously led to one of its biggest rallies ever.

Source: Coinmarketcap

Chart Mirrors Pre-2021 Bull Run

A side-by-side comparison of ADA’s weekly chart from late 2020 and now in 2025 reveals a striking resemblance. Both timeframes display a giant cup-and-handle formation, which is a classic bullish pattern often seen before massive breakouts.

Back in late 2020, ADA was trading under $0.10 when it broke out of this same setup. What followed was nothing short of explosive—a rally of over 2,400% that pushed the token above the $3 mark during the 2021 bull run.

Now in 2025, the same pattern is forming again. The price has been curving into a rounded bottom structure, with the neckline resistance sitting just near the $1.60–$1.70 range. Adding more weight to the setup, ADA is currently holding above its 50-week moving average, just like it did before the previous breakout. This long-term support level could serve as the launchpad if the pattern plays out again.

Can ADA Repeat History?

While short-term sentiment remains cautious, long-term technicals are telling a different story. If ADA breaks above the upper resistance of this cup pattern, it could confirm a macro reversal and signal the beginning of another bull run.

Given the similarity to its pre-2021 behavior, many traders are now eyeing ADA as a potential breakout candidate. If Bitcoin regains strength and market sentiment shifts positively, ADA could be among the top altcoins to lead the charge.

For now, all eyes are on the $1.60–$1.70 zone. A clean breakout above that level could flip the script for ADA in 2025.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.