Cardano is once again drawing attention as its current price movement shows striking similarities to previous market cycles that preceded explosive rallies.
The cryptocurrency is currently trading at $0.62, appears to be consolidating under key resistance levels, setting up what could become another significant upward phase.
Looking back at Cardano’s history, market uptrends have often arrived faster than expected.
In 2017, ADA traded between $0.018 and $0.03 in October before surging to around $0.71 by December, recording gains of over 2,200% in just a few weeks.
The same pattern repeated in 2021 when ADA climbed from below $0.30 to an all-time high near $3.10 by September, marking a tenfold increase.
Market watcher The DApp Analyst noted that bull markets rarely climb gradually; they tend to take off sharply after long periods of accumulation.
The current phase, with ADA’s price coiling in a narrow range, seems to reflect that same pattern of quiet buildup before momentum returns.
Cardano open interest hits $1.7B, signaling potential volatility
Recent data shows that open interest on ADA derivatives has reached about $1.7 billion, surpassing its previous 2021 highs. This rise suggests that traders are positioning themselves ahead of potential volatility.
Technical structures on the chart are forming near $0.80, mirroring ADA’s consolidation from 2018 to 2020, which lasted roughly 665 days before the massive 2021 rally.
This extended sideways movement may indicate another accumulation period, often seen before large breakouts.
Short-term dips and shakeouts are likely, but historical trends suggest they could serve as a setup for a sharp upward move.
Macro conditions turn favorable
Broader economic indicators are also contributing to the optimistic outlook. Inflation is easing across several major economies, central banks are signaling possible rate cuts, and regulatory clarity around digital assets continues to improve.
These developments have encouraged institutional investors to look beyond Bitcoin, opening the door for increased interest in altcoins like Cardano.Â
Nevertheless, the market appears to be approaching what many see as the last dip before the next major run.