- Cardano (ADA) has dropped 23% this year but gained 8% in the past week as the crypto market shows signs of recovery after a sharp correction phase.
- ADA's current price pattern closely mirrors Algorand's (ALGO) 2020 setup before its massive 560% rally, showing similar rejection, consolidation, and potential breakout structure.
- Both cryptocurrencies experienced multiple trendline rejections followed by significant drops (70% for ALGO, 61% for ADA) and 16-week consolidation periods in demand zones.
- ADA's 50-week moving average is flattening and the setup appears nearly complete, suggesting a potential bullish breakout similar to ALGO's explosive rally could be imminent.
Date: Tue, April 15, 2025 | 05:56 AM GMT
The cryptocurrency market has faced a sharp correction phase, where Ethereum (ETH) itself recorded its worst Q1 decline since 2018 — plummeting by a staggering 50% this year. This widespread weakness has weighed heavily on altcoins, triggering sharp drops and investor concerns across the board.
Among the altcoins, Cardano (ADA) has shed 23% of its value this year. But the market is now showing signs of life, pushing sentiment higher and triggering sharp gains across the board, including a 8% jump for ADA in the past 7 days.
Now, eyes are turning to ADA — because its current price setup is beginning to look strikingly similar to Algorand’s (ALGO) just before its massive breakout in late 2020.
Cardano (ADA) Is Mirroring Algorand’s 2020 Breakout Pattern
Cardano (ADA) is starting to show signs of a potential breakout pattern that looks very similar to what Algorand (ALGO) did back in late 2020. The comparison between the two weekly charts is striking and could hint at what’s coming next for ADA.
In ALGO’s 2020 chart, the price faced multiple rejections from a downward trendline. After the final rejection, it dropped nearly 70% and entered a long consolidation phase, which lasted about 16 weeks. During this time, the price stayed within a strong demand zone, where buyers slowly stepped in. The 50-week moving average also flattened out, signaling that the coin was gathering strength. Then, out of nowhere, ALGO exploded with a massive 560% rally.
Cardano seems to be following the exact same path. Just like ALGO, ADA was rejected several times by a key trendline. It has now pulled back about 61% and has been consolidating in a similar support zone for 16 weeks. The 50-week moving average is flattening, and the price is building up just beneath resistance — very much like ALGO before its breakout.
What’s most interesting is that both charts show the same structure: rejection, drop, long consolidation, and potential breakout ahead. ALGO’s rally came right after completing this setup, and many believe ADA could be getting ready for a similar move.
While the breakout hasn’t happened yet, the setup is nearly complete. If ADA follows ALGO’s playbook, a strong rally might be just around the corner. For now, it’s a waiting game, but the similarities between the two are hard to ignore.
What’s Next for ADA?
Of course, no two patterns play out exactly the same way — but in crypto, history tends to rhyme. And this particular rhyme looks loud and clear.
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