The cryptocurrency market is on edge, and Cardano’s native token, ADA, seems to be following suit. With prices trending downward, ADA’s future looks uncertain as market pressures mount. The formation of bearish patterns and ongoing sentiment shifts suggest that more declines could be ahead.
As of December 31, 2024, leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) continue to face challenges in gaining upward momentum. This broader market weakness has added to ADA’s difficulties, keeping its outlook bearish.
Read on to discover what the charts are signaling for ADA in the coming days.
Technical analysis points to a bleak short-term future for ADA. The token has formed a descending triangle pattern on its daily chart, a bearish signal that often precedes a breakdown. This comes after the completion of a head-and-shoulders pattern, which triggered the current downtrend.
If ADA falls below the key support level of $0.825 and closes a daily candle beneath it, analysts predict a 10% drop, with the next target around $0.75. However, ADA’s bearish trend depends on breaking this support. If the token holds above $0.825, it may avoid further losses or even stabilize.
While short-term indicators suggest caution, long-term holders appear to maintain strong confidence in ADA. According to Coinglass, $37.92 million worth of ADA has been withdrawn from exchanges, indicating significant outflows to private wallets.
Such outflows typically reduce sell-side pressure and can signal buying interest, suggesting investors see current prices as an opportunity for accumulation.
Traders, however, are more cautious. As ADA nears critical support, many are unwilling to take new positions, leading to the liquidation of millions in long positions. Open interest in ADA has dropped by 3.9% over the past 24 hours, highlighting this hesitation.
Curious about Cardano’s future? Check out the latest Reda Cardano price prediction and discover what experts are forecasting for ADA’s next move!
At the time of writing, ADA is trading near $0.8456, down 3.15% in the past 24 hours. During this time, trading volume has risen by 15%, showing increased activity from traders and investors.
This surge in trading activity suggests growing interest as ADA approaches a pivotal price point. Whether the token breaks below its support level or manages to hold steady will likely set the tone for its price direction as the new year begins.
According to our Cardano price prediction, the altcoin’s price could hit a maximum of $2.62 in 2025.
Cardano is an underrated investment and has a high chance of performing in the next couple of years, considering the plethora of applications.
Even the most bullish of Cardano supporters acknowledge that Cardano will only potentially surpass Ethereum within 18 to 20 years.
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