What’s Next For Cardano Price After 220% Rally

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As a seasoned crypto investor with over a decade of experience navigating the volatile cryptocurrency market, I find myself intrigued by the recent developments surrounding Cardano (ADA). Last week’s surge was nothing short of impressive, and while the subsequent consolidation has caused some uncertainty among traders, I remain optimistic.

After a strong increase of over 200%, some traders are questioning whether the price of Cardano will keep rising or take a downturn.

This article explores what ADA price could next. 

Cardano Price Analysis: What Next After The Recent Surge?

According to crypto experts, there’s potential for further growth in the price of ADA as the bull market persists. In a recent post on platform X, well-known analyst EL observed that the current period of consolidation resembles what occurred during the previous bull run. The coin stayed below $1 for a while but then shot up to $2. After hovering under $2, it reached an all-time high of $3.

The statement aligns with the forecast made by Ali Charts back in October. In his earlier comments, he suggested that Cardano might mimic its 2020 trend, experiencing a surge post-US elections, followed by a peak in September 2025.

The technical analysis indicates that the price of Cardano may continue to rise. On the daily chart, Cardano appears to have settled down and is exhibiting indications of forming a bullish pennant structure – a common continuation signal. This pattern emerges when an asset experiences a parabolic surge, followed by a smaller symmetrical triangle formation. Typically, this pattern culminates in a powerful bullish breakthrough.

It’s often the case that cryptocurrencies like Cardano, as well as stocks, may pause their upward momentum following a significant milestone such as reaching $1. However, it’s worth noting that at this time, Cardano’s price is still above both its 50-day and 200-day moving averages, indicating a positive long-term trend. Additionally, the Average Directional Index (ADX) has climbed to 58, suggesting a robust trend continuation. Based on this analysis, it’s predicted that Cardano will keep climbing and reach the next significant level of $1.50 in the coming days.

In a positive outlook, if the coin returns to its peak of $0.808 from March 2021 (a level it previously reached), this could be interpreted as a ‘break and retest’ pattern. This pattern is commonly seen as a strong indication that the uptrend will continue.

Potential Catalysts For ADA Price

In the upcoming weeks, there are two possible triggers that might boost Cardano’s price. Primarily, a significant increase in Bitcoin‘s value to approximately $100,000 is predicted by analysts, and it could happen as early as this week. If this happens, Cardano may reap the benefits.

To elaborate, the Cardano network is experiencing considerable progress. According to DeFi Llama’s figures, the total value locked within the platform has surged by an impressive 205% over the past month, reaching more than $604 million. This significant increase positions it as the 17th largest chain in the industry. Furthermore, the transaction volume within Cardano’s DeFi protocols rose by 64% during the last week to $105 million.

Similarly to other coins, it stands to gain under Donald Trump’s administration due to his supportive policies. Notably, he has brought on board several individuals known for their positive stance towards cryptocurrencies, such as Elon Musk, Scott Bessent, and Howard Lutnick.

 

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2024-11-25 15:38