Key Takeaways
The price of Cardano (ADA) briefly retested the $1 mark on Monday, Jan. 20. However, as it did over the weekend, the cryptocurrency has dropped below the threshold again as of this writing.
This subsequent decline has raised concerns about ADA long-term potential — particularly in 2025, which many deem to be a bullish year for the crypto market.
However, as it stands, Cardano whales appear unperturbed by the altcoin’s short-term price action. Instead, on-chain data shows these key stakeholders accumulating in large volumes.
Besides that, the technical outlook also hints at an explosive rally for ADA that could see its price inch closer to the peak of the 2021 bull run.
On Jan. 19, the balance held by addresses who own between 10 million to 100 million ADA was 11.94 billion. Meanwhile, at the time of writing, the figure has risen to 12.06 billion.
This increase indicates that Cardano whales have accumulated approximately 120 million tokens over the last two days. With ADA’s current price at $0.98, the value of the purchased tokens exceeds $100 million.
If sustained, this buying spree could exert upward pressure on Cardano’s price, and the cryptocurrency could rally above last year’s peak of $1.33.
From a historical standpoint, it appears that ADA’s price could trade much higher this year. This is according to the weekly chart which reveals that the token could be following a pattern that drove it to $3.10 on Sep. 2, 2021.
Before the breakout around February 2021, Cardano traded within $0.034 and $0.39 between early 2018 and late 2020. But as soon as the price climbed past $0.41, the extended rally began, and ADA rose nearly 700% to surpass $3 at that time.
A critical look at the ADA/USD weekly chart shows that between November 2023 and 2024, ADA’s price traded between $0.30 and $0.73. But since it has broken out of the range, it could experience consolidation at some point.
However, if past performances influence future trends and historical pattern rhymes, Cardano’s price could hit $3 before the end of this cycle.
But on the 4-hour timeframe, ADA risks an extended decline. This is because the Relative Strength Index (RSI) has dropped below the neutral signal line.
The RSI uses the speed and size of price changes to measure momentum. When the indicator’s reading rises, momentum is bullish. However, since it is the other way around, the momentum around ADA is bearish, and this could drag the price further down.
As it stands, ADA is likely to break below the 0.236 Fibonacci retracement level at $0.91. If this happens, then the altcoin’s value might sink to $0.83 in the short-term.
However, if ADA bounces above $0.91, this extended correction might not take place. Instead, with increasing buying pressure, Cardano price could jump to $1.10 at the 0.786 Fib level.
In the long-term if Cardano whales continue their buying pressure, the $3 prediction might come to pass.
On the flip side, if these stakeholders cash out their already-existing holdings, capitulation might happen and the bullish ADA prediction might be invalidated.