An analysis says Cardano's long-term price movement is showing a structure similar to the period just before the 2020 bull market.

On Sept. 25, blockchain media outlet The Crypto Basic reported that market analyst Javon Marks raised the possibility that ADA has entered a new accumulation phase and set a target price of $2.90.

The key point of the analysis is structural similarity on the weekly chart. Marks said Cardano's current price structure resembles its 2020 pattern, when it moved sideways for a long period before breaking higher and entering a strong uptrend. He assessed that ADA has rebounded from a recent low and is moving through a prolonged range, and that the current phase could be the early stage of a bull market.

A TradingView weekly chart released by Marks focused on similarities between the two periods. The chart shows ADA moving through a wide sideways range after rebounding from a recent low, and in 2020 it went through a similar accumulation process before shifting into a sharp rally. He said such similarities could lead to a move toward $2.90 and described it as a huge bull run.

ADA has already shown a rebound since mid-September. After trading around $0.19012 on Sept. 16, it recovered gradually amid a broader market upswing. It rose to $0.262 this week but gave back some of the gains and is now trading around $0.246.

To rise from around $0.246 to $2.90 would require a gain of about 1,050 percent. Based on a circulating supply of 36.76 billion ADA, the market capitalisation would expand to about $106.62 billion. That level is also close to Cardano's previous high of $3.10.

Behind the comparison is Cardano's past bull market. ADA traded at around $0.02 in early 2020 before entering a prolonged uptrend and rose to $3.10 on Sept. 2, 2021. Marks judged that the current chart also resembles that period in that it stayed for a long time within a larger sideways structure and is attempting an upside breakout.

Voices in and outside the market also continued to mention the possibility of a return to $3. CoinMarketCap founder Yura Karamanenko previously said he expects ADA to revisit the $3 level and said the key issue is not whether it can, but when. Charles Hoskinson (찰스 호스킨슨), Cardano's founder, has also mentioned ADA's past move from about $0.02 to $3.10 and raised the possibility of another major rally.

Still, there is no guarantee past patterns will repeat. This analysis only shows that Cardano could be in an accumulation phase similar to the previous cycle. As a result, the points to watch will be whether ADA actually breaks above its current sideways structure and whether the recent rebound leads to a long-term trend reversal.

$ADA looks to have based, similar to its 2020 base before a massive move, and prices could be right in the early stages of yet another monstrous run. The target, $2.90, which right now, is over 1,049% away! (Cardano) https://t.co/TcVXu8J5wW