Crypto markets are heading towards a largely bullish end to the year. However, the broader market trends and major cryptocurrencies like Cardano are showing a sluggish trend with fewer possibilities for a bullish recovery. ADA bulls are trying to validate a decent uptrend, but the overall trend remains under a bearish influence as the rally is constantly printing lower highs and lower lows.
In a scenario where the price may close the annual session below crucial resistance, will Cardano reclaim $1 in Q1 2025 and set new highs?
ADA’s daily chart suggests that the price is undergoing an inverse V-shaped pattern that could drag the levels back to its initial position around $0.4. Volume has fallen to the floor, suggesting a massive drop in volatility that could raise serious concerns about the upcoming price action in 2025. Is the bull run over? Will ADA price stop following the market trend as it did before?
The historical chart of ADA's price rally suggests that the token has room to renew a strong bull run, provided it begins a strong recovery from current levels. After failing to rise above the resistance zone between $1.29 and $1.5, the price has fallen but is holding above the trend reversal zone between $0.78 and $0.85 , acting as a strong support zone. However, the price is trading above the bearish zone as it has broken the multi-year downtrend line, which indicates that a reversal could be quickly approaching.
The Gaussian channel has turned bullish after being bearish for a few months, indicating a momentary change in trend. Furthermore, the MACD suggests a decline in buying pressure and both the MACD and the signal line are heading towards a bearish crossover. Meanwhile, the levels remain within the positive range, suggesting a quick recovery soon after the bearish crossover, keeping the bullish hopes alive.
Therefore, the Cardano (ADA) price rally could still be long into 2025 if the token manages to trade above the support zone by the end of the year. This could help the price regain $1 in the early days of 2025 and maintain a healthy rally thereafter.