- Despite current lows, ADA mirrors Ethereum’s past trajectory amidst Bitcoin’s bull market doors.
- Analyst Gambardello compares ADA to ETH, highlighting DeFi’s emergence and foundational development after bear markets.
- ADA’s 78% dip from its peak echoes Ethereum’s history, suggesting a potential recovery and surpassing key resistance.
Cardano (ADA), the eighth-largest cryptocurrency in terms of market cap has experienced a recent price surge but currently trades below the levels seen during the previous bull run during March-April 2021. This situation has raised concerns among investors who are comparing ADA’s performance to the recently renewed bullish momentum of Bitcoin (BTC).
In the previous bull run when Bitcoin reached a peak of $60,000, ADA traded concurrently above $1. While Bitcoin has surpassed $60,000, ADA hovers around 65 cents as per CoinMarketCap.
Crypto analyst and Cardano proponent Dan Gambardello examined this discrepancy and drew comparisons to Ethereum’s (ETH) price action during a similar phase in the previous cycle. Like ADA, ETH’s price was initially lower when Bitcoin reached comparable levels but later experienced significant growth.
The analyst highlights as per the above image the launch of ADA in late 2017 placing it towards the end of the bull market which was unlike the more established ETH. Despite both reaching bull market highs in 2017, ADA lacked the foundation built by ETH.
Gambardello emphasizes the emergence of Decentralized Finance (DeFi) projects with Uniswap launching for ETH in October 2018 and SundaeSwap for ADA in January 2022.
Thus, data suggests that ADA has followed a pattern similar to ETH and endured a substantial correction (bear market) followed by a period of foundational development. He showed that both ETH and ADA experienced similar levels of volatility during their respective bear markets, with price drops exceeding 90%.
During the previous cycle, when Bitcoin (BTC) broke key resistance levels or “bull market doors,” ETH experienced a 60% drop from its peak, trading around $500 when BTC reached $17,000. In contrast, although ADA is currently down 78% from its peak it is trading below its price point when BTC reached $60,000.
It suggests that ADA might be following a similar pattern to ETH historically. As reported by CoinEdition earlier, Cardano whale activity suggests potential future price recovery, and analysts predict surpassing a key resistance level could lead to further gains.
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