Cardano (ADA) continues to remain under pressure, having lost 2.9% in the last 24 hours. Technical analysis suggests that further declines are possible in the coming days.$ADA
Currently trading around $0.86, ADA has entered a downtrend after hitting $1.30 levels in early December and has dropped below the 50-day moving average (50DMA) again. This suggests that the market is currently under bearish control and ADA could decline towards the $0.80 support area.
If the price breaks below the $0.80 support, ADA could drop to the key support level around $0.57, which would be a drop of about 57% from the current highs.
However, despite these negative signs on the charts, there are still a few reasons to be optimistic about Cardano’s price outlook. ADA is down around 35% from its recent highs, which could be a temporary correction in a bull market rather than the start of a new bear market.
Cardano Price Could Recover in 2025: Here Are the Reasons
Factors affecting the price of Cardano and the overall crypto market suggest that a recovery could be seen in early 2025.
Crypto-friendly Donald Trump will be inaugurated on January 20, and the Republican-controlled Congress will be in session in a few days. Investors predict that 2025 will be the beginning of a new era for the crypto market, with global crypto adoption set to increase significantly.
Trump is likely to issue an executive order to create a Bitcoin reserve, end the SEC’s crackdown on the crypto industry, and have Congress approve regulations in favor of the crypto industry. These developments could accelerate Bitcoin’s momentum toward becoming a “global reserve asset,” while also helping altcoins perform well.
ADA, which was previously labeled an “unregistered security” by the SEC, could be one of the cryptocurrencies that could do well during this period. There are several factors that could cause Cardano’s price to increase significantly in 2025.
The possibility of Cardano founder Charles Hoskinson becoming one of Trump’s crypto advisors could also benefit the Cardano ecosystem. Cardano is also set to become a Bitcoin layer 2 solution by 2025. This could also help Cardano grow, as Hoskinson expects Bitcoin’s price to reach $250,000-$500,000 in the next few years.
However, Cardano has so far failed to reach a similar level of adoption as chains like Ethereum, Solana, and Sui. According to DeFi Llama data, the total value locked in Cardano’s smart contracts is around $450 million. This has led to Cardano sometimes being referred to as a “ghost chain.” However, if this trend changes and adoption increases, Cardano could see a major price increase.
In summary, while Cardano is currently showing weak price action, it could perform strongly in 2025. A realistic price target for this bull market would be to target the 1.618 Fibonacci extension level, which extends from the 2023 lows to the 2021 highs above $3. This equates to around $5.