Why is the price of Cardano (ADA) going up today?

TL;DR

ADA jumped to $1.05, possibly driven by the overall market recovery, whale buying and Cardano partnership rumors. Analysts predict the asset could reach $1.20 soon, with long-term targets of up to $7 based on technical patterns and upcoming developments.

What caused the bomb?

Cardano’s ADA is among the best-performing cryptocurrencies today (January 15), with its price rising to a one-week high of approximately $1.05 (according to CoinGecko data). Its market capitalization rose above $37 billion, thus consolidating the asset’s position in the top 10 of crypto.

ADA price, Source: CoinGecko

Perhaps the most obvious reason driving the rally is the general resurgence of the digital asset market. Bitcoin (BTC), whose price briefly dipped below $90,000 a few days ago, is now worth around $97,000. Ethereum (ETH), Solana (SOL), Ripple (XRP) and many others have also posted impressive gains in the last 24 hours.

Another factor could be whale activity. Popular X user Ali Martinez revealed that these big investors have accumulated more than 100 million ADA (worth more than $100 million) in the last 48 hours.

Whale purchases reduce the available supply, potentially creating buying pressure and driving up prices due to basic economic principles. The move often signals confidence in the asset, encouraging smaller players to follow suit, further amplifying the upward movement in prices.

Last but not least, ADA’s latest bombshell could be attributed to speculation about an upcoming partnership between Ripple and Cardano. The leaders of the two entities have held discussions in recent months. More recently, Cardano founder Charles Hoskinson hinted that the potential collaboration could involve the integration of Ripple’s stablecoin:

“We’ve already had a call with the RLUSD people. We are actively talking.”

ADA predictions

Many market watchers think that Cardano’s native token has yet to reach new highs. User X Ssebi claimed that the asset had formed a “big W pattern” on its price chart. According to them, ADA is headed towards $1.20 because it broke the depicted resistance at $1.02.

Others who weighed in recently include Dan Gambardello and Altcoin Daily. The former believes that ADA has “one of the most bullish weekly pattern setups in crypto”, predicting a possible price explosion to $7.

Altcoin Daily made bullish predictions about numerous cryptocurrencies earlier this year, predicting that ADA’s valuation could reach $6.45 sometime in 2025.

Meanwhile, Cardano is poised for significant developments over the next 12 months that could boost the price of its token. To explore what’s in store, watch our detailed video below:

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