Over the past 15 months, Cardano (ADA), a pioneering layer one (L1) blockchain, has experienced a notable shift towards bullish sentiments. This shift coincided with significant events, such as the re-election of Donald Trump on November 4, and has been marked by a weekly higher high and higher low, suggesting a strong macro bullish outlook.
Despite a fully diluted valuation of approximately $39 billion and an average daily trading volume of $871 million, Cardano has encountered substantial resistance above the $1.24 mark. From a technical analysis perspective, ADA’s price currently faces midterm bearish sentiment. However, a potential bullish outlook could emerge in the first half of 2025 as more buyers enter the market.
Midterm Targets for ADA
In the daily timeframe, Cardano’s price is forming a potential head and shoulders pattern following its encounter with the upper boundary of a multi-month megaphone consolidation. The daily Relative Strength Index (RSI) has developed a bearish divergence, indicating a possible price drop in the near term. However, a rebound is anticipated in the first quarter of 2025.
Moreover, ADA’s price has consistently closed below the 50-day Moving Average (MA), signaling a decline in previously bullish momentum. Should a further crypto market selloff occur, ADA is likely to find solid support between 77 cents and 68 cents.
Fundamentals to Consider
The Cardano network has evolved into a dynamic web3 ecosystem, boasting over $433 million in total value locked (TVL) and a stablecoin market cap exceeding $22 million. The introduction of decentralized governance through the CIP-1694 features of the Chang hard fork has significantly enhanced Cardano’s appeal, drawing more on-chain users amid the increasing mainstream adoption of digital assets, fueled by institutional investors.
On-chain data analysis by Santiment reveals that Cardano whale addresses, holding between 1 million and 10 million coins, have purchased over 20 million coins in the past 48 hours. Currently, these addresses hold nearly 6 billion tokens. With more than 21.8 billion ADA staked to secure the Cardano network, the circulating supply is gradually decreasing, which bodes well for a bullish long-term outlook.
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FAQs
How high can Cardano go by the end of 2025?
According to our Cardano price prediction, the altcoin’s price could reach a maximum of $2.62 by 2025.
Is Cardano a good investment?
Cardano is considered an underrated investment with a high potential for performance in the coming years, given its wide range of applications.
Can Cardano overtake Ethereum?
Even the most optimistic Cardano supporters acknowledge that Cardano may only surpass Ethereum within the next 18 to 20 years.
