In recent months, Cardano (ADA) has experienced a significant rally, with its price movements captivating both investors and analysts alike. As it retests the upper boundary of a megaphone pattern on the weekly chart, Cardano’s journey is marked by both opportunities and challenges. This large-cap altcoin, boasting a fully diluted valuation of approximately $45.5 billion and a daily average trading volume around $4.4 billion, saw a retracement of about 25 percent over the past three days. By Tuesday, December 10, during the mid-London session, ADA was trading at roughly $1.01.
The heightened volatility in Cardano’s market has led to significant liquidations, with over $24 million being liquidated from the leveraged market in the last 24 hours, predominantly affecting long traders. Additionally, Cardano’s Futures Open Interest (OI) has seen a notable decline of over 26 percent, settling at around $832 million at the time of writing.
What’s Next for Cardano Price
As the altseason gains momentum, driven by the strategic rotation of crypto assets from Bitcoin (BTC), Cardano has emerged as a favored choice among large-scale investors, often referred to as “whales.” Despite losing a critical support level at around $1.2—where approximately 93,000 addresses had purchased over 2.5 billion ADA—the altcoin is now striving to maintain its footing at the $1 mark. Failing to hold this position could result in further declines toward the 81-cent level.
According to renowned crypto analyst Ali Martinez, Cardano’s price movement is mirroring a pattern reminiscent of the 2020/2021 bull cycle. Martinez suggests that ADA remains in a favorable buying zone, even if it dips below 80 cents. Furthermore, the analyst expresses confidence in ADA’s potential to reach new all-time highs during this bull cycle, setting an optimistic target range between $4 and $6.
Fundamentals Driving Cardano’s Growth
Cardano’s recent price surge is underpinned by several favorable fundamentals. Notably, the election victory of President-elect Donald Trump has played a pivotal role, with Cardano founder Charles Hoskinson actively collaborating with the transition team to promote crypto-friendly regulations. This political climate is conducive to Cardano’s growth, as it aligns with broader regulatory advancements in the cryptocurrency sector.
Moreover, the Cardano network has witnessed a significant increase in its Total Value Locked (TVL), surpassing $555 million. This growth reflects the platform’s growing adoption and the robust activity of over 54,000 daily active addresses. These developments signal a strong foundation for Cardano’s future potential, attracting both institutional and retail interest.
In conclusion, Cardano’s journey is marked by both volatility and promise. As it continues to navigate the complexities of the crypto market, its strong fundamentals and strategic positioning could pave the way for a bright future. Investors and enthusiasts alike are keenly watching Cardano’s next moves, eager to see how it will shape the cryptocurrency landscape in the coming months.
