Key Takeaways
Cardano’s 2024 performance was turbulent, marked by a high in March followed by a prolonged six-month correction. However, November brought hope as the ninth-largest cryptocurrency soared by 300%, hitting a new yearly high of $1.32.
However, the excitement was short-lived, as ADA dropped by 40% within just two weeks. Yet, 2025 has begun on a more positive note, with Cardano already halfway back to its 2024 highs.
As the new year unfolds, Cardano could continue its recovery, potentially setting the stage for another rally.
Cardano’s bounce at the $0.80 horizontal area (white icon) has positioned it well for an upward movement in the first quarter of 2025. The bounce prevented a breakdown and led to a large, bullish candlestick in the third one.
The three-candlestick pattern, known as a morning star, often leads to a bullish trend reversal. The pattern shows that the large decline from the first week halted in the second and was entirely retraced in the third.
The $1.25 resistance is especially critical since it is the final horizontal resistance until $2. A breakout above it can cause ADA’s price to increase by another 110%.

Despite a slight decrease in momentum, key technical indicators suggest that ADA remains in a bullish trend.
The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both above their bullish thresholds, with no signs of bearish divergences. This suggests that the uptrend could continue.
However, the daily chart presents some uncertainty. While ADA has broken out from a descending trendline, it faced rejection at the 0.618 Fibonacci retracement resistance, a level that often marks the end of corrective price movements.
Until ADA clears this level, it’s difficult to confirm a fully bullish trend.

One encouraging sign is the daily RSI and MACD. The RSI has recently crossed above 50, and the MACD has made a bullish cross. These signals have previously preceded significant price surges, including a 300% rally.
The wave count analysis further supports the bullish outlook. It suggests that ADA is currently in the fifth and final wave of its upward movement, which began in August 2024.
The fourth wave, a correction, has completed at the 0.5 Fibonacci retracement level, setting the stage for the final push.
If ADA breaks above $1.25, the price could accelerate, but a potential dip near $0.75 to complete the correction would not invalidate the bullish count—it would merely delay the final increase.

The likely target for this final wave is between $1.68 and $1.81, with the upper boundary extending toward $2, setting up the potential for a major rally.
The ADA price has shown resilience by regaining most of its losses resulting from the end-of-2024 correction. If Cardano breaks out above the $1.25 resistance area, it will confirm the final portion of the bull run has started. In that case, the price could increase toward at least $$1.68-$1.81 and possibly $2.