Cardano Nears End Of 2020-Style Correction: Is $5 To $10 Next?

Cardano (ADA), a prominent cryptocurrency, may be nearing the culmination of a significant multi-month corrective phase, drawing striking parallels to its market behavior observed in 2020. This assessment comes from crypto analyst Quantum Ascend, whose recent technical analysis suggests that several key weekly indicators are now showing early signs of a positive shift, potentially heralding a new expansive cycle for ADA.

The analyst’s insights, shared in a detailed technical video, highlight a crucial “lower trendline reset” that historically preceded Cardano’s prior explosive growth. This current market structure is interpreted not as a continued downtrend, but as the final stages of a broader consolidation, setting the stage for potential upward momentum.

Cardano’s 2020 Fractal: A Historical Precedent

Quantum Ascend’s analysis centers on a “fractal” pattern observed on Cardano’s weekly chart, reflecting a macro, multi-leg corrective framework. This framework, described as an A-B-C-D wave structure, is currently awaiting its ‘E’ leg completion.

This ‘E’ leg is deemed critical as it typically signifies the concluding phase of a wedge-like compression, often preceding a significant price movement. The analyst points to a similar historical pattern:

An initial upward surge to a specific resistance level.
A subsequent pullback and consolidation.
Another attempt to push into resistance.
A decisive wick that retests a crucial lower trendline area.

This historical pattern, according to Quantum Ascend, served to establish a robust lower trendline before Cardano embarked on its next major expansion. The current market action is seen as mirroring this foundational phase.

Understanding the Macro Correction

The analyst emphasizes that the current price action, while corrective, is part of a larger, structured consolidation. This perspective suggests that the market is actively preparing for an upward trajectory rather than signaling further declines.

“This is the same exact move that Cardano had to come down to set the lower trendline. So right now setting the lower trendline, before it went on a blast off.”

Ambitious Price Targets: Is $5 to $10 Realistic?

Leveraging this fractal analysis and Fibonacci levels, Quantum Ascend has outlined ambitious price targets for Cardano once the current structure completes. These targets are presented with a conservative and a primary outlook:

Conservative Target: $5
Primary Target: $10

These projections are not made in isolation but are contextualized within Cardano’s historical performance and the broader altcoin market cycles. The analyst recalls ADA’s last major bull run:

A monumental 170X increase, from approximately one penny to $3.

When comparing the current potential upside to historical cycles, the analyst notes:

A move to $10 from current levels implies a 22X to 25X return.
The 2021 alt season saw a comparable 21X expansion.
Even the conservative $5 target represents a significant 12X increase.

Such figures, while substantial, are presented as not unprecedented during late-cycle expansions within the cryptocurrency market.

Key Technical Indicators Signaling a Shift

Beyond chart patterns, Quantum Ascend highlights several weekly technical indicators that are beginning to suggest a shift in momentum for ADA.

Relative Strength Index (RSI): The weekly RSI is observed “finally starting to curl up off the floor,” after an extended period near oversold levels since late October. This upward turn often precedes significant price movements.
Momentum Indicators: The analyst notes a decrease in negative momentum and references an “ABC” structure on the MACD, further supporting the narrative of an impending turnaround.

The emphasis is placed on higher timeframes, like the weekly chart, which tend to be slower to react but offer more reliable signals once a rotation is confirmed. “A lot of these major moves happen when the weekly RSI goes from low to high,” the analyst stated, underscoring the significance of the current indicator readings.