Peter Smith
Cardano (ADA) investors are closely monitoring the monthly chart as familiar patterns emerge - ones that mirror the early stages of the previous major bull run. The structure displays higher highs and higher lows, suggesting strengthening momentum in ADA's long-term trajectory.
ADA's Monthly Chart Resembles 2020 Setup
The current chart formation bears remarkable similarity to 2020's structure, just before ADA surged from under $0.10 to over $3, as noted by analyst Sssebi. Trading around $0.82 today, ADA is consolidating above the mid-$0.70s range.
A rounded cup-like pattern has formed, with price action stabilizing above previous support zones. The market appears positioned at a similar inflection point to the one that preceded its last explosive cycle.
Technical Structure Points to Strength
The bullish case rests on several observations: ADA has consistently defended the $0.50–$0.60 support zone, preventing deeper pullbacks, while each correction has established a stronger floor, indicating accumulation. The $1.00 level remains the critical resistance to watch - a break above could trigger momentum toward $1.50 and higher. The monthly RSI is trending upward, reflecting improving strength, and trading volume suggests gradual reaccumulation.
Why Fundamentals Align With the Chart
Recent developments within the Cardano ecosystem provide fundamental support. Hydra scaling upgrades are enhancing network efficiency, while DeFi expansion and rising staking activity are increasing on-chain utility. Cardano's proof-of-stake model is also attracting institutional interest in sustainable blockchain infrastructure.
Cardano Prepares for the Next Phase
The long-term chart suggests Cardano may be approaching the next phase of its cycle. If ADA maintains its pattern of higher lows and reclaims the $1.00 threshold, the asset could enter a strong bullish phase reminiscent of its previous market run. For investors, this setup may represent the early stage of another significant opportunity - though navigating volatility remains essential.
Peter Smith
