History Suggests Cardano Could Rally to $5 but Must Hold This Level for Higher Prices

The Cardano bullish case hinges on a crucial level, and analysis suggests that higher prices may ensue if support holds.

Notably, technical analyst “More Crypto Online” highlighted this in his Monday commentary amid a broader market downtrend. Cardano further relapses from its moonshot to $1.02 a few weeks back, correcting 5% in the past 24 hours to its current price of $0.838.

Rebound to New Highs Possible if This Level Holds

Meanwhile, the analyst shared that Cardano could rebound from the recent woes and target higher prices as long as it holds the $0.51 support. The mark, which would represent a 39% correction from the current market price, aligns with the lower boundary of an ascending channel highlighted on the 4-day chart.

As earlier mentioned, the price mark is at the bottom of the channel and is also slightly below the 0.50 Fibonacci retracement level at $0.542, as highlighted in the accompanying chart.

Cardano Analysis/More Crypto Online

Targets for Cardano If It Rebounds

Further, More Crypto Online identified the higher price targets for Cardano if it holds $0.51 and reclaims bullish momentum. The first target is to break above the descending resistance trendline at around $1.

If this happens, Cardano will target further upside targets of $1.47, $1.79, and $2.47. At the current market price, this represents a 75.4%, 113.6%, and 194% uptick, respectively. Interestingly, the chart shows ADA could reach $3.10 and $4.14 in a bullish market condition.

Repeating Cyclical Pattern Points to $5 for Cardano

For analyst Crypto Target, the 10th-largest cryptocurrency by market cap is showing a similar price development to its previous cycle. He noted in a parallel commentary that in 2020, ADA followed a pattern of accumulation and re-accumulation before a rally to a major supply, and it seems to be recurring in the present chart.

ADA entered an accumulation zone in May 2022 after breaking below the mid-zone a month earlier. It consolidated within the range between then and October 2024, before breaking out in November to reclaim the mid-zone.

Cardano Recurring Price Pattern/Crypto Target

Meanwhile, the re-accumulation phase started between December’s high of $1.32 and has endured to this day, with the analyst suggesting a breakout is imminent. Notably, he predicted that the next rally would take Cardano past the mid-zone to the major supply zone around $3, culminating in a 258% rally from $0.838.

However, as seen in the previous cycle, Cardano could rally past the supply zone to unprecedented prices, specifically targeting a 496% uptick to $5. This aligns with a price outlook from Mr. Banana, who urged ADA holders not to sell until the $5 price target.

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