Cardano is forming an accumulation pattern similar to the phase before a historical rally

The digital token Cardano ADA $0.26 Binance-Peg Cardano -2.67% Market capitalization $0.12 billion VOL. 24 hours $47.5 million is once again in the spotlight of analysts: its market structure now resembles the phase before the rapid growth of 17,414% that took place in 2020−2021. The Crypto Basic writes about this, noting that the current dynamics of ADA has similarities with the previous accumulation cycle.

The key factor is the connection between the Cardano movement and the manufacturing PMI. On the monthly chart, both indicators have been in a consolidation phase for a long time, and in February, the PMI rose to 52.4. Previously, the rise in the PMI had already coincided with the beginning of bullish phases for the ADA.

Technical indicators also support the analogy with the previous cycle. The monthly stochastic RSI has fallen into an oversold zone, similar to the one that preceded the big rally a few years ago. This suggests that the current market is potentially similar to the previous period of accumulation before a stronger move up.

An additional macro factor could be the end of the US Federal Reserve’s quantitative tightening phase in December. Analyst Dan Gambardello believes that a combination of macroeconomic changes and technical signals can create favorable conditions for altcoins, among which ADA is singled out as one of the possible breakout candidates.

At the same time, the article emphasizes that this is not a guaranteed repetition of the historical scenario, but only a similarity in market structure. Current estimates remain a forecast, but the pattern itself has already attracted the attention of the crypto community, which is closely monitoring the situation.