Here’s Why Cardano Potentially Rallying to $6.25 Is in Early Stage

Market veteran Ali Martinez has argued that the Cardano bull run may still be in its early stages, citing its historical price action.

Martinez highlighted this on the back of the recent market stagnation, insisting that Cardano (ADA) still has more room to grow despite the altcoin already seeing an impressive 168% gain since November 2024, when the current bull run gained momentum.

Interestingly, ADA has observed two bullish closes over the past two months, gaining nearly 40% within this period and rising by about 13% this month alone. Yet, Martinez insists that the Cardano bull run has only just begun. The market analyst called attention to historical chart patterns as backing for his conviction.

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ADA Repeating Historical Pattern

Specifically, Martinez compared ADA’s price action following the 2018 peak with its movements since the 2021 peak. For context, after reaching a top of $1.31 in January 2018 during the bull run at the time, Cardano collapsed as the broader crypto market entered a bear phase.

From the $1.31 peak, ADA slipped into a parallel channel when it slumped below $0.1 in August 2018. This parallel channel dictated Cardano’s price action from August 2018 to July 2020, as the altcoin consolidated between $0.1 and $0.02 within this period. 

Cardano eventually broke out in July 2020 but collapsed again to retest the channel breakout before exploding from November 2020 to the current all-time high of $3.1 attained in August 2021. 

Notably, following the $3.1 peak, ADA collapsed again, entering another bear phase with the rest of the crypto market. Cardano slipped into another parallel channel when it dropped below $0.75 in May 2022 on the back of the Terra ecosystem collapse. 

Cardano Bull Run Still Early

ADA continued to trade within this channel until it recorded another breakout during the November 2024 rally. This breakout pushed Cardano to a three-year peak of $1.32 by December 2024, but the rally lost momentum, with ADA eventually retesting the channel breakout in the months that followed, similar to the 2020 retest.

Now, Cardano is recovering from the months-long retest, and Martinez believes Cardano is in the same position it was in November 2020, right before the explosive run. Notably, from late November 2020, ADA rallied 1,966% to reach the $3.1 peak in August 2021. If the same run repeats from the current price of $0.91, the Cardano price could reach $18.

However, Martinez’s chart points to a less ambitious target. Data shows that he expects Cardano to cross the $5 mark, potentially rallying to $6.25, which aligns with the 127.2% Fibonacci extension. Martinez leverages this to argue that the Cardano bull run is still in its early stages.

Interestingly, other analysts agree that the run still has more room. For instance, market watcher Quintn recently suggested that ADA was on a five-wave structure, and the fifth wave could lead to a peak above $1 in the short term. Meanwhile, Dan Gambardello insists that $10 for Cardano is not unrealistic.