Will ADA repeat the 2021 rally to hit $16? Cardano's (ADA) price may decline, but it is certainly not out.
Despite the monthly decline of 12.13%, the ADA chart sends eerily similar signals to the breakout phase of 2020-2021. At that time, Cardano stunned the market by rallying from cents to over $3.10, marking one of the most famous forms of cryptocurrency in that bull cycle.
Now, it seems history is repeating itself, but with a twist. Predicting Cardano's price is not just about technical analysis this time. It is driven by aggressive accumulation and stronger fundamentals.
In fact, today's accumulation volume diminishes the previous cycle.
If momentum continues to build, some analysts argue that a $16 target for ADA is no longer a dream. The famous consolidation area of ADA in 2021 is where ADA is currently trading within a consolidation pattern that appears almost identical to the structure preceding the 2021 boom.
At that time, ADA broke through a supply area, hovered around the same price level for weeks, and then exploded to $3.10.
Chart 1 - ADA/USDT Live Price, published on TradingView, April 21, 2025.
The same pattern has emerged on the weekly chart for ADA. After climbing above a similar supply area, the asset entered another sideways phase, consolidating and waiting for a potential breakout.
If the pattern unfolds as it did in 2021, Cardano could retest its previous all-time high as a short-term target. A return to $3.10 from current levels represents a 457% profit for ADA holders.
However, the technical structure is just one aspect of this story. Market behavior adds serious weight to this Cardano price prediction.
Cardano's accumulation is off the charts. Supporting the technical narrative is some very bullish on-chain data.
According to Coinglass, investors have been steadily accumulating ADA over the past seven weeks.
During this time, a massive amount of $379 million worth of Cardano was withdrawn and stored in wallets for long-term holding.
This accumulation activity forms about 1.7% of the current market cap of ADA at $22 billion, which is a significant figure indicating long-term conviction. This is not short-term speculation.
It is intentional buying, likely from institutional players or large crypto funds positioning themselves early.
Compare that with the last major ADA rally: from September to November 2020, only $9.57 million of ADA was accumulated during a similar consolidation phase.
This means that the current accumulation is approximately 40 times higher, making the potential of this cycle stronger.
The derivatives market supports the bullish bias. Even with ADA's prices lagging, sentiment in the derivatives market remains overwhelmingly optimistic.
The open interest weighted funding rate is currently sitting at 0.0086%, indicating a large number of long contracts being opened.
This means that traders are betting on a price increase, and if this trend continues in the lower timeframes, it will bolster long-term upward movement. In cryptocurrency markets, positive sustained funding rates often precede large rallies, especially when supported by strong fundamentals like Cardano's accumulation.
With traders and investors seemingly aligned, all signs point to a market preparing for a breakout. Could ADA really reach $16? That is the big question.
ADA reaching its previous high of $3.10 is already a bold call, but could it really climb to $16? If accumulation continues at this rate and ADA breaks out of its consolidation range with volume, then yes, it is within the realm of possibilities.
The difference this time is not just the pattern; it's the intensity behind it. More money, more conviction, and clearer signals are piling up in favor of ADA. Of course, cryptocurrency markets are always subject to unexpected twists, but predicting Cardano's price seems more optimistic now than it has been in months. 2025 could be Cardano's breakout year. The past doesn't repeat, but it often rhymes, and in Cardano's case, the echoes of 2021 are loud and clear.
With rising accumulation rates and market patterns, ADA is creating a potential historical move. If you are looking for altcoins with strong upward momentum and on-chain support, Cardano may be one of the best contenders. Whether it reaches $3.10 again or shocks the market with a $16 breakout, the signals are too strong to ignore.
Predicting the price of Cardano is not just speculation this time; it is rooted in serious market behavior and trend confirmation.
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