Cardano price could rebound 60% despite notable selling activity

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Over the past three days, the value of Cardano has dropped significantly due to a persistent downturn in the crypto market.

The digital currency Cardano (ADA) continued its decline, reaching an all-time low since early January at $0.90, which represents a drop of 33% from its peak in 2024.

Due to the recent market decline, certain whale investors have decided to cash out their ADA token holdings, amounting to over 70 million tokens valued around $63 million, as per crypto analyst Ali Martinez on platform X.

Despite some current uncertainties, there are several potential factors that could drive up the price of ADA in the upcoming months. Initially, it’s important to recall that Bitcoin‘s value is being influenced by a number of positive indicators such as ETF investments, declining exchange holdings, and a bullish pennant formation. If Bitcoin experiences an upward trend, it’s reasonable to expect similar growth for popular altcoins like Cardano and Solana.

Additionally, Cardano has plans for significant updates throughout this year. One of the key advancements includes integrating with BitcoinOS, a move that could potentially unleash around $1.4 trillion worth of liquidity. Simultaneously, their team is also focusing on Midnight, a project designed to enhance scalability within the Cardano ecosystem.

The Trump administration’s anticipated less stringent regulation towards cryptocurrency might potentially boost Cardano. This could pave the way for the approval of an Exchange-Traded Fund (ETF) focused on ADA, thereby bringing in greater institutional investment to Cardano.

Cardano price technicals point to more gains

Over the next few weeks, the graph indicates that the price of Cardano might continue to rise. The coin is shaping up as a bullish pennant, characterized by an extended straight line followed by a triangle formation. This recent decline seems to be a part of the pennant structure. Historically, both cryptocurrencies and stocks have demonstrated a robust surge after forming this pattern.

Furthermore, Cardano has exhibited a break-and-retest pattern, another positive indication for potential price growth. As depicted in the chart above, ADA has formed a cup and handle pattern, with the peak of the cup at approximately $0.805. Similar to the pennant, a cup and handle is a widely recognized continuation pattern.

In simpler terms, the “break-and-retest” pattern happened when the coin initially went over the top edge of the cup, only to return and touch the same spot again, which supported the idea of a bullish breakout.

It looks like these trends might lead to more growth for Cardano, especially during the first three months of the year. If this development continues, the value of ADA could rise to approximately $1.410. This increase would be based on the 61.8% extension of the Fibonacci sequence, which represents a potential jump of around 60% from its current price.

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2025-01-09 18:43