The Cardano (ADA) price was under pressure on Boxing Day, declining over 6%, with technical analysis suggestive that further downside could be in store in the days ahead.
ADA, last around $0.86, remains stuck in a downtrend from its early December highs above $1.30, and is back below its 50DMA once again.
That suggests that the bears are in control of the market right now, with a retest of the key $0.80 support zone likely in the coming sessions.
A break below here could be the trigger for a further decline back to the the next major support zone around $0.57.
That would mark a more than 57% drop from its recent highs.
However, while the charts are telling a story of peril and ADA investors should be prepared for a bumpy ride ahead, there are lots of reasons to be optimistic about the Cardano price outlook.
That’s because the current market pullback, which has seen the Cardano price already pull around 35% lower versus its recent highs, is likely to be a temporary mid-bull market drawdown, not the start of a new bear market. Here’s why.
Cardano Price Likely to Rebound in Early 2025 – Here’s Why
Fundamental tailwinds to the Cardano price and broader crypto markets mean that price risks are very much skewed to the upside in 2025.
The incoming pro-crypto Trump administration is set to land in the White House on the 20th of January, with a new pro-crypto, Republican controlled Congress set to start a few days earlier.
Crypto investors are anticipating that 2025 will be the start of a new golden era for the crypto industry and markets in the USA, drastically accelerating global adoption.
Trump may sign an executive order to kickstart a strategic Bitcoin reserve, his SEC picks will end the crusade against the crypto industry and start a new era of cooperation, and Congress is likely to pass bipartisan pro-crypto industry regulations.
Whilst Bitcoin will be a massive beneficiary as the “global reserve asset” narrative gains traction, altcoins have just as much to gain amid a new, friendlier regime.
ADA, accused in the past of being an “unregistered security” by the current SEC, could be just such a coin.
But ADA has its own narratives that could stimulate explosive Cardano price action in 2025.
Firstly, its founder Charles Hopkinson might end up being one of the crypto advisors to Trump, which would directly benefit the Cardano ecosystem.
Moreover, Cardano is set to transform itself into a fully fledged Bitcoin layer-2 chain by May 2025, per Hoskinson.
BREAKING
Charles confirms: Bitcoin is coming to Cardano in May 2025.
Given that Hoskinson expects a Bitcoin price in the $250,000-$500,000 in the next one to two years, that suggests Cardano could be setting up for explosive growth.
Up until now, Cardano has struggled to enjoy the same levels of real on-chain adoption as chains such as Ethereum, Solana and Sui.
Its total value locked in smart contracts was last around $450 million, per DeFi Llama, leading to accusations of being a “ghost chain”.
But should this trend change and on-chain adoption accelerate, that could help push the Cardano price to the moon.
So, things are looking good for 2025, even if the short-term price action could be a little bumpy.
However, for those with the ability to hold through short-term price bumps, 2025 promises to be a spectacular year for major altcoins like Cardano.
A realistic target for this bull market would be the 1.618 Fibonacci extension of the 2023 lows traced back to the 2021 record highs just above $3.0, which is near $5.0.
That could mean Cardano could still deliver gains of as much as 5x from current levels, despite already being up around 3x from its October levels.
Of course, many bulls are predicting even bigger things for the Cardano price, but no one can really be sure how high the crypto will fly during the upcoming bull market.
That means Cardano is a strong candidate for best crypto to buy right now. However, a concern is the lack of major adoption of the blockchain, despite having been around for many years and boasting a large and dedicated community.
Rather than putting their eggs all in one basket, a better strategy in crypto is to diversify amongst different coins.
Bitcoin, the most established crypto that continues to lead global adoption (national strategic reserves coming in 2025?), should probably be the cornerstone of any investor’s portfolio.
Other major altcoins like Ethereum, Solana and XRP also warrant consideration. But ADA certainly has its place, and could be a major winner in the long run.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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