Is ADA Preparing for Another Giant Drop in 2025?
The cryptocurrency market is heading into the end of the year and is expected to be largely bullish. However, broader market trends and top cryptocurrencies such as Cardano are showing weakness, making a bullish rally less likely. ADA bulls are trying to validate a good uptrend but the overall trend remains bearish as the rebound keeps printing lower highs and lows.
In this case, the price is likely to end the year trading below key resistance levels, will Cardano return to $1 and hit new highs in the first quarter of 2025?
ADA’s daily chart suggests that the price is experiencing an inverse V-shaped pattern that could pull price levels back to their initial position around $0.4. Volume has plummeted, indicating a significant drop in volatility that could raise serious concerns about upcoming price action in 2025. Is the bull market over? Will the price of ADA follow the market trend as before?
historical chart ADA price The rally suggests that the coin has room to recreate a strong bull run, as long as it rebounds strongly from current levels. After failing to break above the resistance zone between $1.29 and $1.5, the price tumbled but remained above the trend reversal zone between $0.78 and $0.85, which is a strong support zone. However, the price is trading above bearish territory as it has broken above the multi-year downtrend line, suggesting a reversal may be coming soon.
The Gaussian Channel has turned bullish after several months of bearishness, indicating a temporary shift in trend. Additionally, MACD indicates declining buying pressure, with the MACD and signal lines heading towards a bearish crossover. Meanwhile, the level remains within the positive territory, suggesting a swift rebound soon after the bearish crossover, keeping bullish hopes alive.
Therefore, if Cardano (ADA) is able to trade above the support area before the end of the year, the coin’s price rise may still continue for a longer period in 2025. This could help the price regain $1 in the first few days of 2025 and maintain healthy gains thereafter.
