Key Insights:
Cardano might soon reclaim it's 2024-high within Q1 2025.
Current market churning favors Cardano, a top smart contract platform.
Estimates show it could resume a bullish journey if it remains above $0.68.
The second and third week of January could push ADA towards $1.23.
Cardano saw a phenomenal rally after Donald Trump's win, going from $0.33 on 4 November to $1.23 on 7 December 2024, a gain of 372%. This rally was part of a greater market rally that took crypto markets to $3.79 trillion.
However, ADA began to correct as soon as the broader markets saw profit booking. It was further corrected when crypto markets saw a selloff due to the US Fed's guidance of lower rate cuts in 2025.
At present, ADA is resting a little above a crucial support zone of $0.68 to $0.77. Above this zone, there is very little risk to its price. Below this price zone, ADA risks falling to $0.35 levels.
However, crypto markets might not see a further selloff due to a couple of reasons. First, Donald Trump's swearing-in is expected to bring some relief initially in terms of morale boost and later in terms of policy changes. Secondly, the crypto markets are expected to have hit a local bottom when Bitcoin touched $91k, i.e., at current levels.
Crypto chart analyst Ali Martinez has identified two levels above which Cardano is relatively safe and has a good chance of bouncing back. ADA could remain bullish if the price remains above those levels, which were $0.68 and $0.77.
The zone between these prices was the support zone for ADA before it went below $0.65 in 2022. Further, the same zone acted as a tough resistance, keeping the ADA price pinned below these price levels. Finally, now that the price has shifted above this zone, ADA could have tougher times ahead if its price breaks down below this zone.
A fall below this level is unlikely due to the reasons mentioned in the previous section. However, in the unfortunate event that this fall takes place, it would present a good opportunity to buy ADA.
In the near future and long term, a crypto market churning is expected to lift utility-driven projects like Cardano and Ethereum and take the limelight away from projects with no ground utility like memecoins.
An interesting analysis by X user Drini Kasmot shows that ADA has successfully held to a 0.5 Fibonacci Retracement level at the current price. Further, the user mentioned that despite the overextension of the price action and the lag in the moving averages, there is little to no possibility of any significant fall occurring in the next few weeks.
Therefore, it makes much more sense to either hold ADA or accumulate as long as it is under $1. The user expects a rally in ADA to come in the next two weeks, coincidentally around the same week as Donald Trump takes oath.
Cardano is one of the most highly useful projects in the crypto market. Unlike memecoins, which are just based on passing trends, Cardano can support complex smart contract operations, DeFi protocols, and several Dapps.
Further, since the same people created Cardano as Ethereum, it was designed similarly and can execute complex workloads similar to ETH.
This is why ADA is the 9th largest crypto with a $29.23 billion market cap.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.