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Cardano Price Prediction: Will ADA Price Reach $1.50 or Drop to $0.70?

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Cardano (ADA) is an experienced first-layer (L1) blockchain supported by a vibrant web3 ecosystem, and the market sentiment has clearly turned bullish in the past 15 months. Since November 4, ADA's bullish momentum has continued to limit the macroeconomic bullish outlook through weekly highs and lows, following Donald Trump's re-election.

This large Altcoin has a fully diluted valuation of around $39 billion, with a 24-hour average trading volume of around $871 million, facing significant resistance above $1.24. From a technical analysis perspective, ADA's price is facing medium-term bearish sentiment before enough buyers will implement the bullish outlook, possibly in the first half of 2025.

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ADA's Medium-Term Targets

On a daily timeframe, the Cardano price has formed a potential head-and-shoulders pattern after reaching the upper boundary of a multi-month consolidation range. Due to the daily Relative Strength Index (RSI) forming a bearish divergence, ADA's price is likely to decline in the coming days before rebounding in the first quarter of 2025.

Additionally, the ADA price has consistently closed below the 50-day Moving Average (MA), indicating the previous bullish momentum has clearly weakened. If the crypto market sells off further, the ADA price should find a solid support zone between 77 cents and 68 cents.

Fundamental Factors to Consider

The Cardano network has evolved into a vibrant web3 ecosystem, with a Total Value Locked (TVL) exceeding $433 million and a stablecoin market cap of over $22 million. Against the backdrop of institutional investors driving mainstream adoption of digital assets, the introduction of decentralized governance through the CIP-1694 feature via the Chang hard fork on the Cardano network has greatly helped the blockchain attract more on-chain users.

According to on-chain data analysis provided by Santiment, the balance of Cardano's large addresses holding between 1 million and 10 million tokens has purchased over 20 million tokens in the past 48 hours, currently holding nearly 6 billion tokens. With over 21.8 billion ADA staked to protect the Cardano network, the overall circulating supply is gradually decreasing, which is very favorable in the long run.

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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