Cardano – Assessing the odds of ADA repeating its 2021 cycle to $3.10

• Cardano’s latest double-digit surge was just part of another hype-driven cycle, primed for quick manipulation
• Prevailing market sentiment hinted at a more uncertain path ahead

Cardano [ADA] is making a comeback, soaring by 14% in just four days. Hype cycle or not, momentum is on its side – Pushing ADA into a prime FOMO zone.

With ADA still 75% below its all-time high at press time, is history about to repeat itself for a 2021-style rally?

Breaking down the odds

Like most cryptocurrencies, Cardano is trading well below its post-election highs, struggling to hold key psychological levels. Its rapid price swings have kept investors on edge, making it a high-risk, high-reward asset. Since pulling back from $1, ADA has hit three consecutive lower lows, reinforcing its downtrend. 

With over 70 million ADA tokens offloaded by whales in the last 96 hours, the chances of losing the critical $0.70–$0.65 support range are growing. 

Source: TradingView (ADA/USDT)

This sharp sell-off suggested that ADA’s recent double-digit surge may be just another hype-driven cycle, ripe for quick manipulation and profit-taking. A consolidation in this range could have paved the way for a bullish repeat of ADA’s 2021 rally, when it hit an all-time high of $3.10 – A staggering 630% year-to-date gain. 

However, with market sentiment turning increasingly uncertain, Cardano remains a volatile asset, making ADA’s next move highly uncertain.

What’s next for Cardano?

Given Cardano’s high volatility, it remains a risky bet – For now. While the ADA/BTC pair is showing some relief, it’s still far from reclaiming previous highs needed for a true rebound.

Meanwhile, a major liquidity pool with 10x long leverage at $11.60 faces a potential wipeout, as ADA teeters just 12% above the critical $0.69-mark.

Source: Coinglass

With the stakes this high, a repeat of the 2021 rally feels like a distant dream. For ADA to reclaim $1, holding its press time levels is crucial. 

Otherwise, with big sell-offs, extreme volatility, and long squeezes in play, the altcoin could be on the verge of seeking new support on the charts.