Cardano ($ADA ), the ninth-largest cryptocurrency by market capitalization, has recently attracted attention due to its price action. According to renowned crypto analyst Ali, the current price pattern of ADA mirrors that of its previous cycle, suggesting a potential breakout on the horizon. Ali notes that the first major correction following the bull run in 2020 occurred at the same time as the correction seen in ADAโs recent price movement, leading him to forecast a price target of $6 if this historical pattern holds true.
As of December 22, 2024, Cardano was experiencing a 4% dip in the last 24 hours, trading at $0.8825 amid a broader market sell-off that saw $246 million in liquidations. Over the past week, ADA has fallen by 19%. Despite a four-day decline, Cardano managed to rebound from a low of $0.762 on Friday, but the recovery faltered at $0.997 on Saturday, with further losses continuing into Sundayโs session, hitting lows near $0.869 at the 50-day simple moving average (SMA).
Traders are closely watching the $0.869 support level, as failing to hold could push ADA down to $0.76 or even lower to the $0.69-$0.50 range. However, a strong rebound could see ADA test the $1 resistance once again. This pivotal support level will be crucial in determining ADAโs next move as the market continues to assess its potential for a bullish recovery.
Plomin Hard Fork Update: Significant Governance Milestone Ahead
In addition to the price movement, Cardano is also making significant strides in its blockchain development. The upcoming Plomin hard fork is set to unlock full on-chain governance features for the Cardano ecosystem, marking the completion of its technical bootstrapping phase. According to recent updates from Intersect, the governance action for this upgrade has been submitted on-chain for ratification by the Cardano Stake Pool Operators (SPO) and Intermediary Community Contributors (ICC). If approved, this hard fork will fully implement CIP-1694, enabling decentralized governance on the Cardano mainnet.
The expected dates for the Plomin hard fork, pending approval, are between January 4 and January 29, 2025, with the earliest possible enactment set for January 4. This upgrade is seen as a critical milestone in Cardanoโs evolution, as it will empower the community to participate in decision-making, significantly enhancing the blockchainโs governance capabilities.
Looking Ahead: Cardanoโs Future
With the Plomin upgrade on the horizon and the potential for a major breakout, Cardano remains a key project to watch in the crypto space. The marketโs current pattern could signal a substantial rally if ADA manages to hold key support levels and overcome resistance barriers. As the network continues to evolve, the upcoming hard fork will play a critical role in strengthening its decentralized governance model, setting the stage for future growth. For investors, understanding these key developments and monitoring the price movements closely will be essential to making informed decisions in the coming months.
