Cardano (ADA) has sparked fresh optimism in the crypto market, surging by 10% in the past 24 hours. This rally comes as broader cryptocurrency markets stabilize, driven by Bitcoin’s ascent above $97,000, bolstering market sentiment. ADA’s price recovery to $0.957 marks a promising rebound, but challenges remain in its quest to surpass the $1 mark.
Momentum Builds, But Challenges Persist
Cardano’s recent rally, which pushed the price above $0.90, showcases resilience after months of stagnation. The cryptocurrency has gained 10% over the past week, solidifying its position as the ninth-largest by market capitalization. However, declining whale activity raises concerns about the sustainability of this upward trend. Large holders, or “whales,” have reduced their ADA holdings, signaling potential bearish momentum ahead.
On December 11, whales holding between 10 million and 100 million ADA saw their combined holdings shrink to 12.15 billion ADA, while those with 1 million to 10 million ADA now control 5.64 billion ADA. This declining participation underscores waning confidence among major investors, even as retail interest surges.
Also Read: Cardano (ADA) Faces Bearish Trends: Key Support Levels and Market Outlook for 2024
Technical Analysis: Key Levels to Watch
ADA’s four-hour chart reveals critical support and resistance zones. Immediate resistance lies at $1.00—a psychological barrier that could unlock a path toward $1.30 if breached. On the downside, robust support sits at $0.80, with secondary levels at $0.70 and $0.50 providing a safety net for potential pullbacks.
The Relative Strength Index (RSI) currently hovers near 67, indicating overbought conditions. While this reflects heightened buying pressure, a short-term correction may be on the horizon.
Outlook for 2025
Cardano’s price trajectory depends heavily on sustained investor confidence and reduced selling pressure from major holders. While the recent rally hints at bullish momentum, breaking past the $1 mark will require renewed market participation and robust network growth. As the broader crypto market steadies, Cardano remains a key contender for the anticipated 2025 bull run.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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