Cardano price could rebound 60% despite notable selling activity

Cardano price has fallen for three consecutive days as the outlook for cryptocurrencies continues to deteriorate.

Cardano (ADA) extended its downtrend, falling to $0.90, its lowest level since January 1 and 33% below its 2024 high.

The downward momentum caused some whales to move out of position. According to popular crypto analyst Ali Martinez of X, whales sold more than 70 million ADA tokens worth approximately $63 million.

Still, several catalysts could push the ADA price higher in the coming months. First, as previously mentioned, there are multiple tailwinds in the Bitcoin price, including ETF buying, falling exchange balances, and a bullish pennant pattern. The recovery in BTC will likely mean gains for popular altcoins like Cardano and Solana.

Additionally, Cardano is preparing major updates this year. The most notable ones will be the upcoming integration with BitcoinOS, which will unlock over $1.4 trillion in liquidity. Developers are also working on Midnight, an ecosystem scaling project.

Cardano could also benefit from the incoming Donald Trump administration, which is expected to take a more lenient regulatory approach towards crypto. One potential impact could be the approval of a spot ADA ETF that would bring more institutional capital into Cardano.

Cardano price techniques point to further gains ADA price chart | Source: crypto.news

The daily chart shows that Cardano price may rise further in the coming weeks. The coin is gradually forming a bullish pennant pattern consisting of a long vertical line followed by a triangle formation. This recent pullback appears to be part of the pennant formation. Cryptocurrencies and stocks often experience a strong uptrend after forming this pattern.

Additionally, Cardano developed a breakout and retest pattern, which is another bullish continuation signal. The chart above shows ADA forming a cup and handle formation with the top of the cup at $0.805. Like the pennant, the cup and handle is a well-known continuation pattern.

The breakout and retest pattern occurred when the cryptocurrency broke above the upper side of the cup and then retested, confirming the uptrend.

These models show that Cardano will gain more, especially in the first quarter of the year. If this scenario occurs, ADA price could jump to $1,410, corresponding to the 61.8% Fibonacci extension level, representing a potential upside of 60% from the current level.