Cardano Prepares for Potential Rally Above $7, Analyst Reveals

TLDR

Table of Contents

Technical analyst identifies extended accumulation pattern forming on Cardano’s higher timeframe charts.
ADA has consolidated within a wide horizontal range following its September 2021 all-time high of $3.10.
The digital asset defended critical support at $0.220 and bounced without further downside.
Current price action shows 35 percent gains from the range floor, with ADA trading around $0.297.
Pattern analysis reveals similarities to previous cycle structure that led to substantial breakout rally.

Cardano maintains position near the lower edge of an extended consolidation zone following years of correction. Technical analysis from a market expert indicates that chart patterns resemble conditions preceding previous expansion cycles. The forecast outlines a scenario where Cardano could climb beyond $7 if bullish momentum develops.

Extended Consolidation Range May Signal Approaching Transition

Following its September 2021 peak of $3.10, Cardano entered a sustained corrective phase. The asset declined approximately 90% from its high and established a horizontal trading range.

$ADA MONTHLY STRUCTURE SHIFT?
📉 Multi-year correction range following prior expansion cycle.
Recent reaction from the lower boundary of the range.
📈 Early signs of higher timeframe momentum attempting to build.
Historically, major expansions followed prolonged compression… pic.twitter.com/MTY0GQpcGl
— Bitcoinsensus (@Bitcoinsensus) February 24, 2026

Monthly timeframe charts reveal price finding stability near the lower edge of this consolidation zone. Recent market activity demonstrates demand emerging at the $0.220 support area.

On February 6, ADA reached $0.220 before reversing higher without violating support. The cryptocurrency currently trades around $0.297 following a 35% advance.

Trader Bitcoinsensus published chart analysis highlighting this market structure. He identified Cardano as occupying a “transition zone” positioned between accumulation and expansion phases.

His analysis notes that previous market cycles developed extended base formations ahead of significant price advances. The current chart setup displays comparable characteristics.

Cardano registered a positive monthly candle following multiple months of declining prices. The asset approaches what could become its first green monthly close in half a year.

Momentum indicators on higher timeframes display early directional changes. These technical signals match behavioral patterns observed during late-stage corrective periods.

Technical Framework Suggests Substantial Upside Potential

The analyst drew comparisons between current market structure and the base pattern established during 2020. Throughout that timeframe, ADA surged from $0.0177 to reach $3.10.

That substantial advance followed a prolonged consolidation phase before upside breakout momentum materialized. Present market structure displays similar extended range characteristics.

According to the technical projection framework, Cardano holds potential to surpass its previous peak. The analysis maps a possible trajectory extending above $7.

Reaching that level would constitute approximately 2,257% appreciation from present valuation. Achievement of this target requires sustained accumulation and demand.

The analyst emphasized that maintaining consistent momentum remains essential for expansion phase development. He noted that overall cryptocurrency market conditions would play a significant role in price trajectory.

Cardano maintains position within its established horizontal consolidation zone. Price action remains elevated above the recent $0.220 support test.

Current market data shows ADA trading at $0.297. The asset displays monthly gains following its recent bounce from range lows.