Cardano (ADA) Price Hints at Final Pullback Before Major Breakout

Since early June, Cardano has traded within a narrow range, facing strong resistance around $0.59 while finding consistent support near $0.55. 

However, a historical pattern similar to ADA’s previous market cycles is beginning to unfold, indicating that the altcoin may be in the final stages of a pullback before witnessing a bullish reversal. 

ADA Enters Final Accumulation Phase

In a July 7 post on X, crypto analyst Javon Marks noted that ADA’s price movements now mirror the structure of its last major accumulation phase, which preceded its explosive 2021 rally. 

In the price chart Marks added to the post, he drew parallels between ADA’s past and present market cycles and found that between 2018 and 2020, the coin went through a three-wave correction and formed a rounded bottom, which ultimately led to its explosive breakout past $3.09 in 2021.

Cardano Fractal Pattern. Source: Javon Marks on X

Since 2022, a similar structure has been gradually unfolding, with ADA once again completing a multi-wave correction and forming a price base. This repetition suggests the coin may be gearing up for another major rally if the pattern holds.

Such fractal patterns are often seen in long-term market cycles, where investor behavior and market psychology play out in repeated phases. If ADA continues to mirror its historical structure, a breakout from the current accumulation zone could pave the way for a bullish phase, driving prices toward previous highs and beyond.

According to Marks, if the pattern holds, “this can result in a more than 383% upside from here…”

ADA Traders Bet on Breakout

While Marks’ projections represent more of a long-term outlook, the near-term prospects—despite recent pullbacks—do not look too bad either.

Per Coinglass, the coin’s funding rate remains positive, indicating that traders are positioning for continued upside and remain confident in the asset’s near-term trajectory. At press time, this is at 0.0054%.

ADA Funding Rate. Source: Coinglass

The funding rate is a periodic payment between traders in perpetual futures contracts to keep the contract price aligned with the spot price. When the funding rate is positive, there is a higher demand for long positions than shorts. 

This trend suggests that more traders are betting on ADA’s price breaking above its narrow range and recording new gains in the near term. 

Moreover, while its price stagnates, ADA’s Chaikin Money Flow (CMF) has climbed, suggesting a steady uptick in buy-side pressure. At press time, this momentum indicator, which tracks how money flows into and out of an asset, is at 0.05 and in an uptrend. 

Cardano RSI. Source: TradingView

When the CMF indicator rises during an asset’s sideways price action, it points to accumulation. This paints a scenario where ADA investors are gradually buying in anticipation of a future breakout.

Can ADA Hold $0.58? Market Eyes $0.593 Resistance for Clues

At press time, ADA trades at $0.58. If the market’s sentiment becomes bullish and demand accelerates, the coin’s price could attempt to break above the resistance at $0.593.

A breach of the barrier could trigger an extended rally toward $0.64.

Cardano Price Analysis. Source: TradingView

On the other hand, if selling activity strengthens, it could push Cardano’s price down toward support at $0.55.