- Summary:
- Cardano price has struggled to break the $1.12 barrier for the last four days despite rising by 25 percent in the last week.
Cardano price declined on Monday after getting rejected near the $1.10 mark. ADA has struggled for traction above that level for the last four days, signaling an exhaustion of the upside momentum. However, the sentiment surrounding the coin is still bullish after gaining 25% in the last week.
What could influence Cardano price?
ADA looks primed for a stronger performance in 2025 thanks to a series of upgrades and a potential spot ETF approval. The ETF approval is especially significant, as it could bring an inflow of whale and institutional investment in the coin, which could strengthen the upward propulsion.
Also, Cardano price upside could benefit from the substantial number of long-term holders of the coin. 70.9% of ADA holders have held it for more than a year, which is significant considering that the coin only retested the $1 mark on November 22, 2024, after having been there last in April 2022. That means the vast majority of investors are in profit, reducing downward pressure on ADA price.
Meanwhile, Cardano chain experienced a significant spike in DeFi activity, underlining rising utility for the coin. According to DeFiLlama, Cardano’s Total Value Locked (TVL) rose by 33% in the last seven days. However, the last 24 hours saw the TVL drop by 0.03%. Therefore, ADAUSD could regain the upside momentum if its DeFi performance returns to the upside.
Cardano price prediction
Pivot: Cardano price pivots at $1.000 and the RSI favours the downside. However, breaking above the pivot could swing the momentum to the upside.
Support: The first support is likely to be at $1.060. A stronger downward momentum could break below that level and test the second support at $1.030.
Resistance: ADA price will likely encounter the first resistance at $1.125. The downside narrative will be invalid if the price goes above that level. Meanwhile, such an action could strengthen the upward momentum and open the pathway to test the second resistance at $1.150.
