$ 96,725.1
BTC
0.89 %
$ 2,723.47
ETH
4.41 %
$ 0.7800
ADA
1.72 %
$ 710.89
BNB
12.69 %
$ 195.97
SOL
0.15 %
Sujit Kumar
Dec 23, 2024

Cardano Faces Price Decline, but Analysts Predict Potential Rally

Cardano Potential Rally
Cardano (ADA) has been under significant bearish pressure, declining by 8.77% over the past 24 hours and 14.45% in the past week. Currently trading at $0.9013, ADA has struggled to maintain upward momentum since reaching $1.3. The ongoing market downturn has left the Cardano community concerned, but some analysts see a potential for a strong rebound.

Optimism from Historical Patterns

Crypto analyst Ali Martinez has pointed to ADA’s historical market cycles to suggest a potential rally. Martinez compares the current correction to ADA's 2020 market movement. During that period, ADA retraced from $0.190 to $0.12 before surging 750% to $1.02 by early 2021. Based on this precedent, Martinez believes a similar rally could occur after the current correction, though it may take time for the market to recover.

On-Chain Indicators Show Challenges

While historical patterns offer hope, ADA’s current market fundamentals remain weak. On-chain activities have dropped significantly, with large transactions hitting a monthly low. Cardano’s Price DAA divergence has been negative for over a week, signaling a disconnect between market valuation and on-chain growth.

Additionally, the Network Value to Transactions (NVT) ratio has spiked from 9.17 to 38.12, indicating that speculation rather than active usage is driving ADA’s valuation.

Near-Term Outlook

With these challenges, ADA’s corrective phase may not yet be over. Analysts predict a possible drop to $0.85 before a trend reversal. For a sustained recovery, ADA needs increased on-chain activity, such as higher active addresses and transaction volume. Breaking key resistance levels at $1.2, $1.6, $1.8, and $2.4 will be crucial for a long-term rally to $6.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Cardano Faces Price Decline, but Analysts Predict Potential Rally
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Top Picks