Cardano (ADA) has been on a wild ride recently. After enjoying a significant rally, the cryptocurrency plunged by over 45%, leaving investors scratching their heads.
However, some experts believe that ADA might be nearing a recovery. Let’s dive into why this prominent analyst sees potential for a bounce back.
Drop
In the last couple of weeks, Cardano’s price movements have been dramatic. From hitting a peak of $1.3264, ADA plummeted to a low of $0.7620.
The drop came amidst hawkish signals from the Federal Reserve, which sent shockwaves across the crypto market.
However, Cardano’s loyal community and bullish analysts suggest this isn’t the end of the story. The steep correction might just be setting the stage for ADA’s next upward movement.
Analyst’s View
Michaël van de Poppe, the founder of MN Consulting and a notable crypto analyst, has shared his optimism about ADA’s recovery. According to his analysis, ADA’s price correction may have reached its bottom near the $0.7460 level.
He bases this prediction on historical price action, pointing out that this level has acted as a multi-year resistance. After ADA broke above it in 2024, van de Poppe now sees it as a critical support zone, potentially paving the way for a bullish rebound.
Resistance
For ADA to climb back to new highs, it must overcome the resistance level around $1.2430. At the moment, ADA is trading at $0.8524, still a fair distance from the resistance zone. But if the asset can break through, it could set the stage for a robust rally.
According to van de Poppe, the recent 300% surge from $0.3263 in November 2024 to $1.3264 in December 2024 might have only been the first phase of a larger bull market. He predicts that ADA could surpass its all-time high of $3.09 within the next two years.
Challenges
Despite the optimism, challenges remain. Cardano’s continued growth depends on more than just favorable price action.
Internal conflicts between its primary developer, Input Output, and the Cardano Foundation could impact investor confidence. Resolving these issues will be key to sustaining ADA’s momentum.
Additionally, macroeconomic factors, including Federal Reserve policies and broader market sentiment, could either support or hinder ADA’s trajectory.
Long-Term Potential
For long-term believers, ADA remains an attractive option. Cardano’s focus on scalability, sustainability, and decentralized applications positions it as a strong contender in the blockchain space.
If the asset can navigate short-term challenges, its long-term potential remains bright.
The coming weeks will likely determine whether Cardano can capitalize on its support levels and push toward new highs. As always, cautious optimism and thorough research are vital for investors considering their next move in the volatile crypto market.
