The Cardano (ADA) price is holding above its 50DMA in the low $0.90s on Monday, as the cryptocurrency market attempts the beginnings of a rebound during a holiday-shortened week.
The final trading days are normally bullish in the stock market, with the crypto bulls also hoping for a recovery after last week’s Fed-fuelled market rout.
The Cardano price dropped as low as $0.76 last week, and at current levels above $0.92, it remains 30% down from the highs it hit in early December above $1.30.
The Fed shocked markets last week by only forecasting two rate cuts in 2025, less than hoped for.
Whilst that has created short-term macro headwinds, crypto has plenty of bullish narratives to fall back on that could support a recovery into the year’s end.
Namely, the incoming Trump administration and Congress are more pro-crypto than most crypto investors/industry participants could have possibly imagined just a few months ago.
That means crypto is on the cusp of entering a new golden age, at least in the US, next year. ADA was hurt badly in recent years by regulatory uncertainty. However, the prospect of its founder Charles Hopkinson becoming an advisor to incoming US President Trump on crypto affairs means the future for the Cardano ecosystem is likely very bright.
Cardano in 2025 will be insane
— Deezy.eth (@deezy_BTC) December 23, 2024
The recent market turmoil, thus, likely isn’t the end of altcoins. Rather, its more likely to have just been a hiccup.
However, a rally at the end of the year hasn’t been confirmed yet. Here are the levels that Cardano needs to clear.
Cardano Price Recovery Into The Year’s End? ADA Needs to Clear This Level
A key level of resistance that might block the Cardano price from advancing into the year’s end is around $1.0.
Not only is this a key level of psychological significance, but it also lines up with the downtrend form the yearly highs.
Once this level breaks, the likelihood of a retest of yearly highs shoots up. But, for now, ADA remains in a technical downtrend, so in the absence of a broader recovery in risk appetite, traders shouldn’t be surprised if the market reverses lower again in the short-term.
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.
Cardano to $10
— Crypto Jebb (@_CoffeeNCrypto_) December 23, 2024
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.
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