More decline or rise to a new ATH?

TL;DR

Analysts highlight a potential breakout for ADA, supported by bullish chart patterns and upcoming developments for Cardano. However, the recent whale sales of millions of tokens could negatively affect the price. The bullish scenario

Despite a solid start to the year, the past few days have not been kind to the cryptocurrency market. The price of Bitcoin (BTC) has fallen by around 9% on a 48-hour scale, while numerous altcoins have suffered even more substantial declines.

Cardano’s ADA is one of these, with a 20% valuation dump since January 7th. It is currently trading around $0.91 (according to CoinGecko data), while its market cap fell well below $35 billion.

Popular X user Dan Gambardello, however, remains optimistic. He recently claimed that ADA has “one of the most bullish weekly pattern setups in crypto,” representing an “inverse head and shoulders with an upward sloping neckline.” Gambradello surmised that a breakout to the upside could lead to a price rally to $7.

Altcoin Daily also participated. Earlier this year, they outlined bullish predictions on multiple cryptocurrencies, predicting ADA’s valuation to reach $6.45 sometime in 2025. It’s worth mentioning that the analyst said this target would not be met to take for granted, suggesting that “theoretically any altcoin can take off.” to zero at any time.” They also warned people to invest only as much as they are willing to lose.

Meanwhile, Cardano will experience some essential developments in the next 12 months that could put upward pressure on the price of the native token. Those who want to check out what’s on the agenda can watch our dedicated video below:

How about an extra withdrawal?

Contrary to the bullish predictions mentioned above, some factors indicate that the ADA could continue to fall in the near future. Earlier this week, X user Ali Martinez revealed that whales have sold over 70 million tokens in a 48-hour period.

Such actions by large investors increase the circulating supply of ADA and could be followed by a drop in prices (assuming demand does not keep pace). Also, the move may discourage smaller players and trigger a larger sell-off.

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