Cardano Holders Reap 5,239% Gains After 60% Drop and 35 Weeks Underwater in Massive 2021 Rally

• Cardano faced a 60% drawdown in 2019, testing investors’ patience with 35 weeks underwater before its explosive rally in 2021.
• ADA’s price surged 5,239% from 2019 to 2021, rewarding long-term holders who braved the accumulation phase and market dips.
• Fibonacci retracement levels at 0.618 and 0.5 signaled key support during ADA’s 2019 consolidation, setting the stage for its massive rally.

Cardano (ADA) has had ups and downs in its trajectory but rewarding for those brave enough. In mid-2019, ADA showed a clear example of accumulation and patience, starting with a price of $0.046. 

Over the following months, however, those gains turned into losses as the price dipped by 60%, leaving buyers underwater for 35 weeks. Investors faced a tough choice: cut losses, stay still, or buy more. Notably, many opted to hold, and their patience paid off. By 2021, ADA surged to $2.5, delivering substantial returns.

Accumulation Phase

From 2019 to mid-2020, ADA went through an accumulation phase marked by low volatility and retracement. The accumulation phase followed a retracement from the $0.046 level, where the price dropped by around 60%. This period tested investors, as ADA hovered in a consolidation phase. 

Despite 35 weeks of being underwater, some investors continued to hold or even increased their positions. The key aspect of this phase was the use of Fibonacci retracement, particularly at the 0.618 and 0.5 levels. These retracement zones, often used by traders to predict support and resistance, acted as crucial signals before ADA’s rise began.

From Drawdowns to a 5,000% Rally

After nearly a year of stagnation, ADA saw a massive breakout in 2021. From its lowest point during the accumulation phase, the cryptocurrency eventually gained 5,239.66%, reaching a peak of $2.5. This price increase came after a long period of consolidation, showing that ADA’s bull run did not happen overnight. 

Notably, large trading volumes accompanied the rally, with over 54.5 billion ADA units traded during the accumulation phase. Volume is often an indicator of interest from big market players, providing further evidence that the rally was supported by institutional activity.

Lessons from Cardano’s Journey

The journey of ADA highlights the power of holding during market dips. Investors who entered at $0.046 in 2019 and held through the 60% decline eventually benefited from the bull run. 

After 35 weeks of being in negative territory, those who maintained their positions saw ADA rise dramatically within just one year. Importantly, this case highlights the potential for long-term returns in highly volatile assets, where patience, discipline, and the ability to weather drawdowns can lead to substantial profits.