4 reasons Cardano price may explode higher in 2025

Cardano’s price remains in a technical bear market, but there are three key reasons why the coin could rebound in 2025.

Cardano (ADA) looks poised to end the year at $0.870, down nearly 35% from its 2023 high, but there are a few catalysts to reverse recent losses in 2025.

First, Cardano will integrate with BitcoinOS in 2025, opening up a $1.5 trillion market opportunity. This integration is expected to increase liquidity within Cardano’s decentralized finance ecosystem, potentially leading to an increase in the total value locked. Cardano’s TVL has historically lagged behind popular blockchains like Solana and Base.

ADA appears undervalued relative to Market Value. Data from IntoTheBlock shows that MVRV has fallen to 1.30 from its peak of 1.90 earlier this month.

Bitcoin MVRV indicator | Source: IntoTheBlock

The MVRV ratio compares a cryptocurrency’s current market value to its realized value and is a widely used valuation metric. Assets with an MVRV below 3.90 are considered fairly valuable, indicating room for growth in ADA’s price.

Additionally, the Midnight mainnet is scheduled to launch in 2025, and the testnet is already underway. Midnight is a privacy-focused project that uses zero-knowledge proofs. Cardano Stake Pool Operators will play a critical role in securing block production and increasing data security, which could positively impact the value of ADA before its launch.

Cardano price has strong technical features ADA price chart | Source: crypto.news

The fourth reason why Cardano will recover in 2025 is that it has strong technicals. On the daily chart, the cryptocurrency is down almost 35% from this year’s high. The trading range of the Murrey Math Lines tool has moved below the upper level of support.

Cardano also formed the falling wedge chart formation, which is one of the most bullish signs in the market. This formation consists of two falling trend lines approaching each other. As the two trend lines are approaching convergence, there are chances that the coin will experience a strong recovery soon.

Cardano remained above the 100-day Exponential Moving Average and the 50% Fibonacci Retracement point. Therefore, the outlook for ADA price is bullish; The first target will be $1,326, the year-to-date high, followed by the psychological point at $2.

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