Cardano Retests Historic Breakout Zone: Is Another 3,000% Surge on the Horizon?

• Cardano retests bullish order block between $0.51 and $0.42 that preceded 3,000% rally.
• Analyst Crypto Patel identifies pattern similar to May 2020 setup that sparked August 2021 peak.
• First target sits at $1.202 for 157% gain, with ultimate projection reaching $5.811.

A bullish price action could be imminent for Cardano as recent analysis identifies a recurring pattern that previously triggered an explosive move. Cardano appears positioned for a massive upward push, according to analysis from Crypto Patel.

The November 19 commentary identified that a pattern which spurred an over 3,000% rally for ADA is forming again on the weekly chart.

Historical parallel suggests major move

The analysis arrives as Cardano looks poised to post its fourth consecutive weekly red candlestick. During this period spanning from late October, ADA has corrected from a high of $0.693 to its current market price of $0.467.

However, Crypto Patel highlighted that ADA has now reached a bullish order block with a history of marking the start of parabolic expansion for the cryptocurrency. If past precedent holds, the analyst believes Cardano could surge from current levels.

For perspective, ADA displayed a similar pattern during the previous cycle. In May 2020, it broke out of a descending trendline, sparking a rally past former resistance around $0.107.

After breaking out to a high of $0.155 in July 2020, the token retested this zone and confirmed it as new support. This successful retest initiated a parabolic phase for Cardano, resulting in an over 3,000% rally to its August 2021 all-time high of $3.106.

Multiple targets defined for potential rally

The order block between $0.51 and $0.42 aligns closely with the former resistance trendline, serving as a crucial point for bullish price development. If ADA bounces from here, it might repeat the price growth recorded in the previous occurrence.

A 3,000% rally from current market price would take ADA to around $14.5. However, this exact growth might not materialize due to ADA’s larger market cap and the concept of diminishing returns in successive bull cycles.

Crypto Patel highlighted three targets for the rally and a point of invalidation. The first target is resistance at $1.202, which represents a 157% gain from current levels. The second resistance target sits at the $2.949 mark, culminating in a 531% increase from current market price.

Ultimately, the analyst predicts a rally to $5.811, which would mark 1,144% growth from here. This target would establish a new all-time high for Cardano, nearly doubling its previous peak of $3.106.