Cardano Price Analysis: Where is ADA Headed Next?
The Cardano (ADA) price is currently battling with key short-term resistance levels around $0.63, with the crypto at an important near-term cross roads.
If the Cardano price is unable to break back above its 21DMA, that would suggest a strong likelihood of a near-term drop back to recent lows around $0.51.
However, Cardano snapped a short-term downtrend earlier this month and has since found resistance above this prior downtrend resistance line. That’s suggestive that the bulls are making progress in regaining momentum, even if price action has been lackluster in recent days.
If the bulls are able to regain momentum and push ADA back to, say, $0.67 per token, that would open the door to a recovery to resistance in the $0.80 area.
Where Next for the Cardano Price (ADA)?
So, where is the Cardano price likely to go next? Well, amid the current choppy market conditions, that’s anyone’s guess.
Trade war fears continue to dominate sentiment across financial markets, and it’s impossible to predict US President Donald Trump’s next move.
However, bubbling in the background is the economy damage being sewn by trade uncertainty, which could be an increasing headwind deeper into 2025.
Fed chair Jerome Powell highlighted growing risks of “stagflation” (an ugly economic situation defined by high inflation but slow or negative economic growth) on Wednesday.
His comments were deemed as “hawkish” by some, given they signaled a reluctance to ease monetary policy in order to prop up the economy amid fears of sticky inflation.
Against this macro backdrop, crypto traders would be wise not to expect any major near-term market rebounds. And any near-term market rebounds, if they aren’t backed by a substantial easing of macro uncertainties, should be looked upon with suspicion.
Rumours of an upcoming partnership between Cardano and Ripple Labs, the creator of the XRP Ledger, could trigger some near-term upside volatility for Cardano.
But a new altcoin season is unlikely to materialize until a flood of new central bank liquidity arrives, which remains some way off.
Buy the Cardano Dip?
The Cardano price could well dip to fresh multi-month lows in the coming weeks and months. Would it be worth buying the dip?
Well, Cardano remains a highly speculative cryptocurrency. It has struggled to garner much by way of real adoption since its launch nearly a decade ago. That’s demonstrated by its low TVL, per DeFi Llama, and low blockchain activity.
That said, Cardano has one of the strongest and most dedicated communities of any crypto. And in wake of the arrival of the pro-crypto Trump administration in the White House in January, it’s been at the forefront of a lot of conversations, even getting a mention from the President himself.
Cardano is also plotting to become the go-to Bitcoin DeFi chain, which could be a major boon for its usage. If Cardano does enjoy accelerated adoption over the next four years of Trump’s term, few should be surprised to see it 10x from current levels to hit new record highs.
That said, it remains a riskier bet compared to better established cryptos like Bitcoin and Ethereum which, arguably, have just as much upside potential.