The price of Cardano (ADA) is expected to rebound to just above the December high of $1.30, and chart analysis paints an optimistic picture for ADA's recent prospects.

Will this be the beginning of a new round of increases, pushing the ADA price up to $2?

ADA's latest trading price is about $1.10, having risen over $0.25 since the beginning of this year, an increase of over 30%.

This round of increases has witnessed the price of Cardano breaking above the downward trend line since early December and rebounding above the 21 and 50 DMA, indicating that bulls have regained market control.

In the past few days, the momentum of ADA has stagnated, and the price of Cardano has fluctuated between $1.056 and $1.118.

However, as Bitcoin (BTC) breaks through $100,000 and seems to have strong momentum, the broader cryptocurrency market sentiment appears to remain positive before the Trump administration takes office in two weeks.

The Trump camp can be said to be the most supportive of cryptocurrency in history, completely opposite to the anti-cryptocurrency stance of the outgoing Biden administration. Coupled with the start of a new pro-cryptocurrency conference, it signifies that the cryptocurrency market is about to enter a new golden era.

It must be admitted that Trump's presidency may become a 'news selling' event. However, there are still two weeks until he takes office, so the altcoin market and Cardano prices are likely to continue rising in the coming trading days.

A strong year of development for ADA is coming.

Most indicators suggest that there is still significant room for growth in the cryptocurrency bull market. First, Bitcoin has only recently entered the final and most explosive phase of its four-year cycle, which typically occurs 6 to 18 months after the halving (which occurred last April).

Along with the rapid rise in institutional adoption and the possibility of the U.S. establishing a Bitcoin strategic reserve this year, Bitcoin will continue to be the largest cryptocurrency in the world by 2025.

However, there are also indications that the altcoin season of this cycle has not truly begun, and Cardano may be one of the main beneficiaries.

Bitcoin's dominance has only recently begun to show signs of collapsing after breaking a long-term upward trend.

During the bull market cycle of 2021, similar breakthroughs were a precursor to the rise of altcoins, with assets like Cardano achieving massive gains.

If a new altcoin season is about to arrive, Cardano has a series of narratives that can help it develop vigorously.

ADA will transform into a Bitcoin DeFi chain in May. Meanwhile, the incoming SEC chairman may abandon the stance of the outgoing anti-cryptocurrency SEC chairman Gary Gensler that ADA is an unregistered security.

In addition, its co-founder and biggest supporter, Charles Hoskinson, may serve as an advisor to the new Trump administration, which could help promote Cardano's adoption in the U.S.

How high can ADA rise in this bull market?

Therefore, many signs indicate that Cardano will surge significantly in 2025. So how high will it rise? During the bull market of 2020/2021, Cardano rebounded to the 2.618 Fibonacci extension line, surpassing the historical high of 2017.

If it can achieve the same performance in this bull market, then the price of ADA could even reach around $7.80.

This means that the returns are almost exactly 7 times the current level. Therefore, Cardano might be the most worthwhile cryptocurrency to buy at the moment.

Risks to consider for Cardano

Nevertheless, potential investors need to be aware of the risks associated with Cardano's prospects. Most notably, despite Cardano's market cap of around $50 billion, its on-chain adoption rate is very low.

According to data from DeFi Llama, the cryptocurrency TVL in its smart contracts has yet to reach $1 billion, and compared to its main competitors (such as Ethereum or Solana), Cardano is far behind in trading activity and dApp activity.

Cryptocurrency investors are advised not to put all their eggs in one basket (unless that basket is Bitcoin!) and should consider diversifying their investments across several different high-potential altcoins.