Cardano (ADA) has struggled to maintain the bullish momentum experienced in recent weeks, with its price still down nearly 67% from its all-time high of $3.09 reached during the 2021 bull run. .
Despite this significant gap, analysts believe that there is a strong possibility Price recovery exists in the weeks and months leading up to the New Year.
Cardano rallies above key moving averages, poised for breakout
Trend Rider, a leading analyst on social media platform X (formerly Twitter), provided insight into Cardano’s current price action, noting That the price has broken below the parabolic line, indicating a cooling-off period, which came above the $1 mark last week.
However, he emphasized that Cardano’s price is consolidating above its moving average, suggesting it is preparing for a potential breakout by “shaking off weak hands.”
Next trend rider Guesses A resumption of bullish momentum soon, predicting that once the price of Cardano breaks the $1.25 resistance level, it could quickly move towards the $3 mark, inching closer to its previous record high.
Adding to the optimistic outlook, analyst Ali Martinez pointed out After experiencing a 44% correction, Cardano began its second phase during the week of February 1, 2021.
Given that the ADA has already made a 43% correction recently, analysts suggest that the next upward movement ADA With a target of $6, may be only two to three weeks away.
Analysts identify key supports and price targets
Another analyst, A.V. Sebastian, also weighed in, suggesting that the recent decline in price may be over, and that Cardano’s price is poised to break out of one. Triangular pattern. He highlighted the previous two candles as particularly bullish and expected a significant rally in the coming days.
In analyzing short-term price actions, many analysts noted that ADA is exhibiting “extremely bullish market formation” on the daily timeframe. A double bottom formation is seen on the chart leading to a breakout and V-shaped recovery with a descending channel.
It is further believed that a retest of the key support zone at $1.3886 seems inevitable for the ADA price in the near-term, which would then lead to a price rally with a key target of $1.7748.
Other support zones have also been done identifiedWith the $0.824 level important to watch in early 2025. Holding that support could open up significant upside potential, and analysts are looking at May 2025 as a key deadline for achieving the targets.
At the time of writing, ADA was trading at $1.14, up 1.13% for the 24-hour period.
Featured image from DALL-E, chart from TradingView.com
