ADA is significantly under selling pressure, having been on the downside for the past three trading sessions when the Altcoins were in the red. Despite this, analysts are confident that the digital asset will recover tremendously; according to technical analysis and fundamentals, the coin could rise by 60%.
Cardano’s price reached $0.90, the lowest since January 1, and it moved 33 percent down from its 2024 high. The downward trend has persisted for quite some time, accompanied by massive dumping of ADA by whales.
Bitcoin’s Strength Could Propel Cardano To New Heights
A crypto analyst on X describes more bad news: whales dump over 70 million ADA tokens, equivalent to approximately $63 million, applying more pressure downwards. However, the following factors could drive the market in the following months:
Whales sold over 70 million #Cardano $ADA in the last 48 hours! pic.twitter.com/dJWRG4shhN
— Ali (@ali_charts) January 8, 2025
Bitcoin Market Strength:
Here’s how the flagship cryptocurrency stands: it has a QR code and wallet purchasing ETF, declining exchange balances, and bullish pennant formation patterns. Further BTC recovery may take many popular altcoins like Cardano to new heights.
Upcoming Ecosystem Upgrades:
Cardano developers are planning major updates that could boost the platform’s utility and trading volume. Some of them are the partnership with BitcoinOS, which should unlock more than $1.4 trillion in locked value, and the release of the scaling solution called Midnight.
Potential Regulatory Tailwinds:
Expectations are that the new Donald Trump administration will favor cryptocurrencies, which could mean the nod to the spot ADA ETF. This would bring institutional capital into Cardano, thus increasing demand.
Another piece of evidence based on technical analysis also supports the context of strong price recovery. Analyzing the daily chart of Cardano, it is possible to conclude that the long vertical stage was followed by the construction of the consolidation stage, which looks like a bullish pennant. This formation usually occurs before a big leap in cryptocurrency and equities.
The break-and-retest pattern also shows a positive signal. ADA has managed to retest the upper part of the cup-and-handle pattern, a popular bullish continuation pattern on this chart.
Fundamentals based on Fibonacci retracement suggest that in a few weeks, Cardano may see its value rise to $1.41 in correlation to the 61.8 % Fibonacci extension tool. This would raise spending on this area from the current levels to 60 percent more.
Although Cardano has recently caused turbulence among investors, technical fundamentals and charting support a return to growth in early 2025. In that case, ADA can recover investor confidence and record significant growth during the year’s first quarter.
The focus remains on Bitcoin’s price fluctuations and potential regulatory changes in the future, which will undoubtedly affect Cardano’s future performance.
