Cardano Price Prediction Points To New ATH as Bullish Breakout Looms

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The price of Cardano (ADA) is displaying robust indications that it might burst through its current level around $1.10, causing excitement among traders. According to Ali Charts, a cryptocurrency expert, there’s a bullish pennant pattern emerging in ADA’s price graph, implying an uptrend could be imminent.

If current trends continue, it’s plausible that Cardano’s price may climb to higher points. In the immediate future, there’s a chance it could hit $1.40, potentially surpassing its previous peak of $3.10. The digital currency has experienced a 28% increase since the beginning of 2025, driven by escalating network usage and heightened investor attention.

Cardano Price Prediction Points To New ATH

At the moment, Cardano’s price is exhibiting a bullish pennant formation, which is a common technical pattern that usually signals the continuation of an upward trend. This pattern emerges after a steep price surge and subsequent narrowing price action that resembles a triangle.

In simpler terms, the current resistance for Cardano (ADA) is approximately $1.11, while its support is roughly $1.10. If ADA manages to surpass the upper trendline, it might lead to a price increase, potentially reaching around $1.40. According to Ali Charts, a swift and seamless rise of Cardano up to $3 could occur if the bullish trend gains momentum. This prediction for the ADA price is similar to an earlier analysis by Coingape, which suggests a comparable price surge following the formation of an Elliott Wave.

In simpler terms, these technical indicators align with our viewpoint. The Relative Strength Index (RSI), currently at 67, shows robust buying activity, but it’s getting close to being overbought. On the other hand, the MACD (Moving Average Convergence Divergence) is still in a bullish state, indicating ongoing upward momentum.

Rising Network Activity Boosts Investor Confidence

Beyond just technical indicators, the activity within Cardano’s network is picking up speed, potentially reinforcing its price movements. As per DeFiLlama’s data, the value locked in Defi on the Cardano blockchain has skyrocketed to approximately $595 million, representing a 33% growth since the beginning of this year.

The increase in Total Value Locked (TVL) shows a growing curiosity towards Cardano’s Decentralized Finance (DeFi) environment, drawing both individual and institutional investors. Moreover, the transaction volumes have escalated significantly, hitting $10.64 million, suggesting an upsurge in on-chain activity.

As a researcher, I’ve observed an impressive surge in the number of funded wallets on the Cardano network. In just under a month, from December 19, approximately 10,000 new wallets have been added to the network, taking the total to roughly 4.38 million. This influx of new investors is typically interpreted as a positive reflection of market sentiment.

ADA Price Resistance Levels and Potential Targets

As the forecast for Cardano suggests a bullish trend, it needs to surpass certain significant obstacles in order to maintain its upward trajectory. At present, these hurdles are located around the $1.20 mark, as indicated by the Donchian Channels.

As I delve deeper into my analysis, surpassing the current level might signal a potential progression towards the $1.34 mark. This value aligns with the 1.618 Fibonacci extension, suggesting a significant growth trajectory.

If the buying momentum for ADA persists and it manages to break free from its current holding pattern, it might eventually aim at reaching higher prices, possibly up to $7. But if ADA fails to exceed $1.20, a reversal could occur, with $1.00 functioning as a crucial support point. If this support is breached, ADA may be vulnerable to additional drops, potentially leading to a test of the $0.92 level.

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2025-01-07 00:02