Mlion's friends, don't you think Cardano (ADA) has been a bit 'stale' this month? Don't worry, I have an exciting piece of news for you — a rare pattern has appeared on Cardano's price chart, which may indicate a significant rebound in the coming weeks!
Think about it, Cardano, this popular Layer 1 cryptocurrency, is currently priced at 1.06, having dropped nearly 201.327 from last year's peak, but then like other cryptocurrencies, such as Avalanche and BNB, it has retreated from its yearly highs.
Cardano's decline has also been accompanied by a drop in the total value locked (TVL) within its decentralized finance ecosystem. According to DeFi Llama, Cardano's total asset holdings now exceed $597 million, but this is significantly less than nearly $700 million at last year's peak. However, its largest protocols within the ecosystem, including Liqwid, Minswap, Indigo, and Splash Protocol, are all operating stably.
However, the whale activity on Cardano has slowed down, with the number of active addresses in the past 24 hours dropping below 43,000, and the open interest in the futures market has also continued to decline. Does this mean Cardano has 'cooled off'?
Don't worry, I'll tell you a few potential catalysts that could drive Cardano's price up in the short term! First, Bitcoin has broken through the $106,000 mark, and the demand for cryptocurrencies is rising, which may support ADA's price. Secondly, Cardano may benefit from the potential listing of a spot ADA ETF, possibly as early as 2025!
And you know what? Cardano has a 'Santa Rally' opportunity! This is a phenomenon where asset prices often rise before Christmas. From the daily chart, the ADA price strongly rebounded after Trump won the election, and then slowly formed a bullish flag chart pattern consisting of a long vertical line and a symmetrical triangle. This pattern is nearing its convergence point, indicating a potential bullish breakout!
Even more surprisingly, Cardano has formed a 'golden cross' pattern, where the 50-day and 200-day exponential moving averages have formed a bullish crossover.
So, Mlion's friends, do you think Cardano will experience a strong bullish breakout in the coming days? If it breaks out, ADA's price could rise to this year's high of 1.325, which means an increase of 231.00 from the current level, and then the bullish outlook may become invalid.
So, are you eager to see Cardano's performance in the upcoming days? Let's look forward to this 'Christmas miracle' together!
