Crypto analysts are asking investors to strategically position themselves for a possible bullish momentum for Cardano, which, if everything held constant, could help unlock an unmatched profit opportunity.
According to technical analysis charts, an ADA rally could be imminent because the token seems poised to revert to its December 2024 highs at the low $1.30 level. Speculation is now rife, with experts opining that ADA could begin a new pump that may skyrocket the token to an all-time high of up to $7.80. When going to press, ADA was trading at $1.10 after pumping over $0.25 or over 30% since the start of the year.
Tread With Care
Investors Need To Tread With a Dose of Caution
The ongoing bullish momentum for Cardano saw the token achieve an impressive 25% surge at the end of 2024, breaking through its key descending triangle pattern before hitting a wall on its upward momentum. According to expert opinion, the digital asset is currently in a period of consolidation that could also determine the direction it will take at the beginning of 2025. However, some technical indicators suggest that investors must tread cautiously amid the positive sentiments.
The token’s value represents more than just market participants’ indecision in its current consolidation phase of between $1.05 and $1.11. The current level reflects a crucial psychological battle between sellers and buyers, the outcome of which will determine whether the anticipated ADA rally materializes. According to experts, the narrowing range indicates that market participants are holding on as they wait for a signal before moving in one direction. The combined unbalanced technical indicators show a thin line between these consolidations that could easily herald a declining Cardano bullish momentum.
A Convergence of Several Technical Weaknesses and Negative Sentiment
Those analysts supporting a cautious outlook cite that the Cardano-weighted sentiment dropped to -0.71, indicating the possibility of a growing sceptical sentiment among investors. The negative sentiment has been derived from social data analytics that has historically preceded price drops whenever traders are increasingly hesitant to open new market positions out of fear of the unknown. This convergence of several technical weaknesses and the negative sentiment has created a somewhat challenging environment for analysts hoping to give direction on whether the latest bullish moment for Cardano can help it maintain the recent gains.
According to analyst Michaël van de Poppe of MN Consulting, despite the mixed signals coming from different technical analysts, there’s still a level of optimism that strengthens the predictions of an imminent DA rally. Van de Poppe suggests that the latest price correction shouldn’t ring any alarm bells but instead be seen as a consolidation towards ADA’s recurring bullish cycle, which could pave the way towards a bullish momentum for Cardano.
A Potential ADA Rally Could Achieve a New All-Time-High
A Potential ADA Rally Could Achieve a New All-Time-High
He stated that Cardano could be at the tail end of its correcting phase, saying, “The scenario remains the same. A hefty run-up and a 40% correction, I think we are reaching the end of this correction, through which I expect a new leg up for things like $ADA.” Van de Poppe believes that a long-term projection for Cardano’s price in 2025 should be encouraging, suggesting that a potential ADA rally could see the cryptocurrency achieve a new all-time high of between $2.50 and $3.00 as 2025 begins. This would happen if crypto market conditions remain favorable for ADA and the bullish momentum for Cardano continues uninterrupted.
Conclusion
The bullish moment for Cardano, which saw ADA’s price surge in early December, is back in full swing, meaning an ADA rally is genuinely imminent. As the rest of the cryptocurrency market regains the strong momentum that saw Bitcoin break the $100,000 barrier in December 2024 hits the market afresh, there’s increased speculation that the inauguration of Trump’s second administration will help reverse the broad anti-crypto stance and push the market even higher.
Frequently Asked Questions (FAQs)
What is ADA, and why is it gaining popularity?
ADA is the native cryptocurrency of the Cardano blockchain. The token is gaining popularity because it has focused on scalability and sustainability and implements smart contracts.
Is ADA’s supply capped like Bitcoin?
ADA’s supply is capped, but not precisely like Bitcoin’s. The coin has a maximum supply of 45 billion tokens, but since it isn’t fixed, users can distribute the coins over time through minting.
Can you use ADA for cross-border transactions?
Yes, ADA can be used for cross-border payments, and thanks to its fast speed and low fees, it’s among the favourites compared to fiat-based transactions.
