Chart analysis suggests a bearish price action in the near term, but positive crypto-friendly political and legal developments in the US suggest Cardano (ADA) could see a strong rally next year.
Cardano price came under significant pressure the day after Christmas and dropped by 6% with technical analysis indicating the possibility of further declines in the coming days, after falling from the early December high above $1.3 and returning again below the 50-day moving average, which expresses the current control of the bears (from the speculators on the price) in the market and the possibility of retesting the important support area at $0.80 in the coming seasons, and breaking this level could lead to further declines towards the next important support area near $0.57.
This represents a 57% decline from recent highs, but there are several reasons to be optimistic about Cardano’s future despite the price charts that hint at a collapse and prompt investors to expect a rough ride. The coin has seen a decline of about 35% from its recent highs, and this is likely a temporary decline in the middle of a bull market rather than the beginning of a new bearish movement.
Cardano price could rebound in early 2025 and the reasons behind it:
Positive fundamental data points to a possible bullish move in early 2025, as the new crypto-friendly Trump administration prepares to enter the White House on January 20, preceded by the formation of a crypto-friendly Republican Congress. Crypto investors expect 2025 to mark the beginning of a new golden era for the crypto sector and markets in the United States, meaning a significant acceleration in global adoption.
Trump may sign an executive order to create a strategic reserve for Bitcoin (BTC), his appointments to the Securities and Exchange Commission (SEC) will end the war on crypto and start a new phase of cooperation, Congress is likely to pass bipartisan pro-crypto laws, Bitcoin could benefit greatly from the promotion of being a “global reserve asset,” and altcoins would gain similar gains in a more tolerant regime for crypto markets.
Here, we cite as an example the ADA coin, which was previously accused of being an “unlicensed security” according to current SEC standards, but it has several factors that could generate strong price growth in 2025. Its founder, Charles Hopkinson, may become one of President Trump’s special crypto advisors, and the Cardano ecosystem could benefit directly from this appointment. Cardano is also preparing, according to Hopkinson, to become a full-fledged layer two blockchain for Bitcoin by May 2025.
Additionally, Hopkinson expects Bitcoin to rise to $250,000-$500,000 in a year or two, indicating huge growth potential for Cardano.
On the other hand, Cardano has so far struggled to attract the kind of real interest that Ethereum, Solana, and Sui have, with around $450 million locked in its smart contracts according to DeFi Llama, leading to accusations of being a “ghost chain.” ADA’s price could skyrocket if this trend changes and its blockchain becomes more popular.
The future looks good in 2025 despite the short-term bearish price action, but survivors will be rewarded in 2025, which holds great promise for major altcoins like Cardano. The logical target for the bull market will be the extension of the 1.618 Fibonacci level to the lows in 2023, which came after the 2021 highs above $3.0 and near $5.0.
This could mean that Cardano price could rise 3x or 5x from its current levels, although it is already 3x higher than its October levels. Many bulls are expecting Cardano (ADA) price to reach even greater heights, but it is difficult to predict the levels it will reach in the next bull market, which indicates that Cardano is a strong candidate for the title of the best cryptocurrency to buy today.
There is concern that blockchain is not getting enough traction despite its existence for several years and the presence of a large and loyal community, while diversifying investments is a better strategy than allocating all of one’s assets to one currency. Bitcoin will likely be a major part of any investment portfolio due to its global appeal and the possibility of international Bitcoin reserves emerging in 2025.
Other altcoins such as Ethereum (ETH), Solana (SOL), and Ripple (XRP) can also be considered, and ADA will certainly get a share of the gains in the upcoming phase and may become one of the biggest beneficiaries in the long run.
