TL;DR
Cardano (ADA) hit a two-week high, trading well above $1. Analysts expect further gains to $4, although the elevated RSI at 80 suggests the asset could face a near-term correction. ADA Bulls Enter
While most leading cryptocurrencies have consolidated in the past 24 hours, this is not the case for Cardano (ADA). Its price is up 12% on a daily basis, currently trading at approximately $1.05 (according to CoinGecko data). In fact, this is the highest level seen since mid-December last year.
ADA price, Source: CoinGecko
There seems to be no specific reason for the resurgence of the ADA. However, the boost could be related to expected developments within the Cardano ecosystem this year. A few days ago, Charles Hoskinson claimed that by 2025, “Cardano will reach heights like never before”.
“We have Bitcoin DeFi, Midnight, Patnerchains, all DApp updates, Midgard and some extra magic we’ll call ‘fire rises,'” the co-founder said.
Before that, Hoskinson signaled his intentions to spend much of his time helping the Trump administration create a comprehensive and possibly more favorable regulatory environment for the digital asset industry.
We recall that the Republican was victorious in the US presidential election in November last year, and his victory caused great excitement in the crypto community. After all, Trump made several promises that could benefit industry supporters.
He will officially become the 47th President of the United States on January 20th, and we have yet to see if he will keep his word and allow the crypto industry to thrive.
ADA Price Predictions
According to several industry participants, the price of Cardano’s native token has much more room for growth. X user Ali Martinez, for example, suggested that ADA is “setting up like it did last cycle,” which could be followed by a push to a new all-time high of $4 in the coming weeks.
Nebraskangooner chimed in as well. They don’t seem to be a big fan of the ADA, calling it “the most useless crypto ever.” However, the analyst believes this could cause it to “blow hard for no reason”.
Contrary to bullish forecasts, one key metric points to good days ahead for the bears. This is the relative strength index (RSI), which measures the speed and change of price movements. The technical analysis tool ranges from 0 to 100, with ratios above 70 indicating that ADA may have entered overbought territory, meaning it could head south soon. The asset’s RSI is currently in the bearish 80 zone.
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