Cardano (ADA) Set for Major Breakout: Analyst Sees $6+ Potential

• Cardano (ADA) is showing a price structure that closely mirrors its 2020–2021 cycle.
• Key Fibonacci levels indicate possible targets above $3, with some projections reaching over $6 if momentum builds.
• A surge in smart contract activity and the formation of bullish patterns like the cup and handle support the long-term bullish outlook.

Cardano (ADA) may be gearing up for a major breakout, according to a technical analysis by analyst Ali Martinez. 

In a tweet accompanied by a comparative chart of ADA’s historical price structure, Martinez highlights that the current price action closely mirrors the 2020–2021 cycle.

Martinez notes that while ADA appears to be following a similar price pattern to its previous cycle, the current progression is unfolding at a slower pace. He also believes the market’s behavior suggests the potential onset of a significant upward move.

Related: Cardano (ADA) Price Prediction for August 2

Fibonacci Patterns Suggest $6+ Upside for Cardano

The chart shared by Martinez overlays ADA’s 2018–2021 and 2022–2025 market cycles, both showing similar consolidation and Fibonacci retracement levels. In the 2020 cycle, ADA rallied from around $0.15 to over $3, a more than 20x increase.

Currently, ADA is trading around $0.72, just below the 0.5 Fibonacci retracement level at $0.85. The projected targets based on Fibonacci extensions include $3.09 (1.0), $4.19 (1.272), and a potential peak above $6.25 (1.272 extension applied to this cycle).

Gradual but Bullish

Martinez highlights that while this cycle is developing more slowly than the last, the technical structure remains intact. This suggests that ADA’s upward momentum may still be in its early stages. 

Notably, the coin reached $1.20 in December 2024, but bearish momentum soon took over, and ADA has since struggled to reclaim the $1 level. If history repeats, ADA’s current position could reflect the pre-breakout consolidation phase of late 2020, just before the coin surged to new highs in early 2021.

Long-Term Bullish “Cup and Handle” Pattern

Other analysts have pointed to additional bullish technical formations. Analyst Crypto Smith recently identified a long-term cup and handle pattern, with Cardano currently testing a key breakout level around $0.92. 

He also noted that ADA whales appear to have completed their accumulation phase, suggesting a major rally could follow if the breakout is confirmed.

Fundamentals Support the ADA Bullish Thesis

On the fundamental side, Cardano has surpassed 300,000 live smart contracts on its mainnet as of today. This is a major milestone achieved less than four years after smart contract functionality was introduced via the Alonzo hard fork.

Related: Cardano’s ADA Used in Argentina’s First Legal Smart Contract

According to data from Alethea, the total number now stands at 300,490, broken down as follows:

This surge reflects rising developer activity and increasing adoption of Cardano for decentralized applications (dApps), further reinforcing the bullish case for ADA.