Cardano Price Prediction 2025: Is ADA Primed for a 25% Drop? Here’s What You Need to Know

Cardano is facing massive upward pressure, which has dragged the price by more than 5% to $0.76 while the trading volume has increased by over 47% to reach above $970 million. Traders were highly optimistic about the token rising above $1 as the ADA price approaches some crucial levels, where a breakout could have resulted in a rise to the $0.99 range. Meanwhile, the price dropped below $0.85, validating a pullback to the current levels of around $0.76. 

Cardano, which was on its way to reach the upper resistance of the descending channel, will the current pullback hinder the progress of the rally?

The ADA price faced a huge rejection in the last few days of 2024, which compelled the token to form consecutive lower highs and lows. After the rebound in early February, the price seems to have halted the bearish activity to some extent, which has helped the token to maintain a horizontal consolidation. Meanwhile, the volume is also rising slowly, which suggests a major price action could be on the horizon. 

Breakout or Extended Consolidation?

As seen in the above chart, the ADA price is feared to drop still more as it is trading between the lines of the Ichimoku cloud, which is heading for a bearish crossover. This suggests the bullish trend is not validated yet, as the bears may be under significant pressure. As a result, the Bollinger bands have suddenly begun to go parallel with each other. This suggests the price is undergoing a sideways consolidation and hence a good time to accumulate. 

On the other hand, the Chaikin money flow has reached 0.3, hinting towards the growing strength of the bulls against the bears while the RSI is hovering just below the average range. This suggests the bulls are vigilant over the current price action, and hence a significant price action may follow ahead of the monthly close. Therefore, if the ADA price reclaims $0.78 during the weekend and rises above $0.8, then the monthly close could be bullish with a higher possibility of rising above $1 in March. Otherwise, it may remain consolidated for a longer time than expected. 

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