Cardano Analyst Claims 2021 Cycle Similarities Point to $5-$10 Rally

• Cardano shows wedge pattern that could spark a major breakout rally.
• Analysts see targets from $2 short term to $5–$10 if momentum sustains.
• ADA mirrors 2021 setup, but outcomes hinge on adoption and market sentiment.

Crypto analyst Dan Gambardello has drawn comparisons between Cardano’s current market positioning and conditions that preceded its major rally in 2021. His analysis focuses on ADA’s distance from all-time highs relative to when Ethereum began setting new records during the previous bull cycle.

In early 2021, ADA was trading approximately $0.38 while sitting roughly 240% below its 2018 peak of $1.398. Following Ethereum’s breakthrough to new highs, Cardano eventually climbed 751% to reach $3.10 by September of that year. Today’s positioning shows similar characteristics with ADA at $0.8831.

Wedge Formation Creates Potential Breakout Setup

Technical analysis reveals Cardano moving within what Gambardello describes as a broadening wedge pattern featuring ascending highs and lows. This structure could support rapid price acceleration if resistance levels are successfully breached.

Despite recent weakness showing 2.5% daily losses and 3.9% weekly declines, ADA maintains positive monthly performance at 7.1%. The token has already gained more than 300% from cycle lows, with peak gains reaching nearly 500% before recent consolidation.

Analyst Alex Clay provides supporting analysis suggesting ADA is replicating its 2019-2021 cycle progression and currently sits in a “re-accumulation” phase. This stage typically occurs before major breakout movements in his analytical framework.

Price Projections Vary Between Conservative and Aggressive Targets

Clay’s technical evaluation places current resistance at the $1.00-$1.20 macro mid-zone, with heavier supply concentration between $2-$3. His bullish scenario projects movement above $5, which would deliver approximately 450% returns from present levels.

Gambardello expects initial challenges around $1.03 but anticipates rebounds could drive prices toward $1.25 and subsequently $2.00. His optimistic outlook includes potential for $10.02 if ADA breaks above $1.25, though he considers $7.50 more achievable this cycle.

The timing prediction suggests this rally would occur 3-6 months following Bitcoin’s peak performance, based on historical cycle analysis. However, these projections require successful navigation of identified resistance zones and favorable broader market conditions.

Both analysts acknowledge that while technical patterns provide framework for analysis, actual performance depends on multiple variables including adoption rates, market sentiment, and macro economic factors that could alter expected trajectories.