During Tuesday’s U.S. market session, Cardano’s ADA token dipped 0.4% to $0.36, continuing its five-month sideways trend while maintaining support above $0.30. This consolidation phase raises questions about whether ADA can build enough momentum to challenge its previous all-time high.

Cardano’s Price Correction from $3 ATH

The layer-1 blockchain Cardano has seen a substantial correction since hitting its record high of $3.10 in September 2021. Over the past year, ADA lost nearly 88% of its value, settling at $0.364 with a market cap decline of $12.78 billion.

However, ADA’s price action has shifted from a downtrend to sideways movement, suggesting stability above the $0.20 level. If buyers leverage this support for a reversal, Q4 could present an opportune window.

Historically, crypto markets often experience increased investor activity towards year-end. The bullish momentum typically gains traction in what’s dubbed “Uptober,” potentially driving recoveries across major cryptocurrencies.

ADA Price Analysis: Cardano Pattern Hints at New ATH Potential

Cardano has previously demonstrated a pattern of pre-bull market rallies in Q4, often preceding larger uptrends in subsequent months. The 2019 price action showed an initial break from the prevailing downtrend, triggering a temporary recovery that enticed crypto buyers.

After a period of consolidation, buyers built sufficient momentum for a sustained bull run, ultimately reaching the current $3.10 ATH.

ADA exhibited a similar pre-bull breakout in late 2023, peaking at $0.81 in March 2024. While the past seven months have erased gains from previous rallies, Q4 2024 could offer the next breakout opportunity.

Based on the current pattern, ADA needs to breach the overhead trendline to kickstart its next potential bull run. Sustained buying pressure could propel the token past its current ATH and towards the $5 psychological level.

With ADA trading at $0.36, a 1,288% rally would be required to reach the $5 target.

Challenges Despite Bullish Pattern

While the pattern suggests an optimistic outlook, it’s crucial to note that Cardano is a more established altcoin. As new projects and tokens enter the market, ADA could face challenges in attracting investor attention.

Potential investors should remain cautious and remember that past performance doesn’t guarantee future results.

Conclusion

Cardano’s historical patterns suggest the potential for a significant bull run following a Q4 breakout. If the pattern holds, ADA could target $5, but bullish momentum may face headwinds given the array of alternative investment options in the crypto market.