Cardano (ADA) is facing challenges in maintaining the bullish momentum it had in recent weeks, currently lingering around 67% below its all-time high of $3.09 reached during the 2021 bull market.
Despite this gap, analysts are optimistic about the potential for a strong price recovery in the upcoming weeks leading to the new year.
Cardano’s Position and Potential Breakout
Trend Rider, a well-known analyst on X (formerly Twitter), discussed Cardano’s current price action, mentioning that the price recently dipped below the parabolic line near $1, signaling a period of consolidation before potentially breaking out.
While the price is consolidating above its moving averages, Trend Rider believes that Cardano is preparing for a breakout, shedding weak hands in the process.
Trend Rider anticipates a return of bullish momentum soon, predicting that breaking through the $1.25 resistance level could propel Cardano towards $3, aiming to surpass its previous peak.
Adding to the positive outlook, analyst Ali Martinez noted that after a 44% correction, Cardano started its upward trend in February 2021. With a recent 43% correction, Martinez suggests that the next rally for ADA could be only a few weeks away, targeting $6.
Identifying Support and Targets
Another analyst, AV Sebastian, suggested that the recent price dip might be ending, projecting a breakout from a triangular pattern for Cardano. The analyst sees bullish signs in the recent candles and expects a notable rally soon.
Several analysts have noted a very bullish market structure for ADA on the daily chart, highlighting a double bottom formation, breakout, and V-shaped recovery along a descending channel.
Analysts anticipate a retest of the key support zone at $1.3886 in the near term, leading to an uptrend target of $1.7748 for ADA’s price.
Further support levels have been identified, with $0.824 crucial to watch for early next year. Maintaining this support could unlock significant upside potential, with analysts eyeing May 2025 as a critical timeframe for achieving targets.
Currently, ADA is trading at $1.14, up 1.13% over the past 24 hours.
Featured image from DALL-E, chart from TradingView.com
