Cardano (ADA), one of the most prominent assets in the cryptocurrency market, appears to be replaying a familiar pattern that preceded its explosive rally in 2021. While ADA has faced a 12% price decline over the past month, the broader structure on its weekly chart has many analysts paying close attention. The current trend mirrors the exact market behavior that led to ADA's previous all-time high, and this time, there’s a critical new factor in play: intensified accumulation.

Over the past several weeks, ADA has been trading within a consolidation channel, a sideways movement where buyers and sellers are essentially balancing each other out. This pattern is remarkably similar to the price structure seen in late 2020 and early 2021. Back then, Cardano breached a key supply zone, pulled back, and consolidated before introducing into a massive rally that eventually took the asset to its historical high of $3.10.

Today, that scenario appears to be unfolding again. ADA has once more pushed past a major resistance area and is now consolidating within the same zone. Technical analysts suggest that if the similarities continue, a breakout may be on the horizon. The first realistic target would be a return to the previous all-time high — a move that would represent a 457% gain from current levels. More aggressive projections even suggest that ADA could push as high as $16 if broader market momentum accelerates.

What sets the current setup apart from the 2021 rally is the scale of accumulation taking place behind the scenes. According to data from Coinglass, investors have been steadily acquiring ADA for seven consecutive weeks. During this time, roughly $379 million worth of ADA has been withdrawn from exchanges and moved into long-term storage, signaling confidence among holders.

This accumulation trend is significant in scale, representing about 1.7% of Cardano's current $22 billion market capitalization. Historically, such accumulation phases often precede supply squeezes — scenarios where available tokens on the market become scarce due to long-term holding, ultimately driving up demand and price.

For comparison, during a similar consolidation phase between September and November 2020, only $9.57 million in ADA was accumulated. That means the current wave of buying is nearly 40 times stronger than during the lead-up to the last major rally. Analysts argue that this kind of sustained interest and reduced circulating supply could amplify any incoming price surge, possibly allowing ADA to exceed its previous peak.

Sentiment in the derivatives market supports this bullish outlook as well. The Open Interest Weighted Funding Rate — a key measure of trader sentiment — remains elevated. At the time of reporting, the funding rate was 0.0086%, indicating that more traders are opening long positions, betting on future price increases. This sustained optimism among futures traders, even during periods of short-term price decline, often contributes to larger rallies when conditions align.

Despite ADA's recent dip, the conviction shown by both spot investors and derivatives traders suggests that the market is positioning itself for a long-term move higher. The ongoing accumulation, combined with a repeat of the same chart structure that led to its previous all-time high, is fueling speculation that Cardano might be preparing for a significant breakout.

As always, the cryptocurrency market remains unpredictable, and past performance is never a guarantee of future results. However, with ADA's technical setup aligning so closely with historical trends and investor confidence showing no signs of fading, many believe the stage is being set for another major run — potentially more powerful than the last.