ADA breaks out of long-term trendline, indicating bullish reversal.
RSI and Bollinger Bands suggest increasing bullish momentum.
Key network upgrades and partnerships could drive ADA’s price to $3-$5 by 2025.
Cardano (ADA), a leading smart contract platform, is showing signs of breaking free from a prolonged bearish trend. As market observers analyze its potential, several technical indicators suggest that ADA might be on the brink of a significant upward trajectory, potentially reaching new heights by 2025.
A comparative analysis of ADA’s performance against Bitcoin (BTC) reveals that the digital asset has broken out of a long-term downward trendline. This breakout is a key indicator of a potential reversal of the previous downtrend. Additionally, the 1-day chart shows that ADA’s RSI suggests potential bullish momentum is underway.
Source: Jesse Olson
Coin Edition’s analysis of the Relative Strength Index (RSI), a momentum oscillator, shows it currently at 52.16, a neutral zone. However, its upward trajectory suggests increasing buying pressure. If the RSI continues to rise, it will likely move into overbought territory, signaling a stronger upward trend.
The Bollinger Bands (BB) on the daily chart indicate that ADA has recently bounced off the lower band and is now moving toward the middle band. This suggests short-term upward momentum, as prices tend to move from the lower band toward the upper band in a bullish scenario.
In terms of price movement, Coin Edition found that recent candles are forming higher lows, suggesting a potential reversal from the downtrend recorded from March to June. ADA is currently trading around $0.398, with the price showing signs of consolidation and slight bullish momentum.
Considering the current technical indicators, ADA‘s bulls are gaining momentum in the near term, particularly in 2024. If it continues to break key resistance levels, we could see a gradual price rise. With positive developments and overall market growth, ADA has the potential to reach new heights in the mid-term (2024–2025). A conservative estimate could place ADA in the range of $1 to $2, assuming steady growth and adoption.
If Cardano continues to innovate and expand its ecosystem, ADA could potentially reach higher targets in the long term (2025 and beyond). A more optimistic estimate could see ADA reaching $3 to $5, especially in a bull market where Cardano sees widespread adoption.
Beyond technical indicators, there are other key factors to consider for long-term price prediction. These include continuous network upgrades on the Cardano network that can attract more projects and users, driving demand for ADA.
Recently, Cardano deployed the final version of Node 9.0. Once 70% of stake pool operators upgrade, the Chang hard fork will be initiated, activating the complete on-chain governance system. Furthermore, increased partnerships and real-world use cases will likely positively impact ADA’s price.
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