Cardano (ADA) Hits Monthly Low of $0.85 with Potential for Rebound
Cardano’s #ADA token experienced a significant decline in December, reaching a low of $0.85, a 10.37% decrease over the past month. Despite this downturn, market metrics indicate potential for a rebound, particularly for strategic investors.
The Market Value to Realized Value (MVRV) ratio suggests ADA may be in an accumulation phase, with current ratios between -13% and -26%. Historically, ADA has rebounded from similar levels, offering opportunities for long-term investors seeking undervaluation.
Photo: Santiment
Cardano’s NVT Ratio Hits High
Conversely, Cardano’s Network Value to Transactions (NVT) ratio reached a 22-month high, indicating a potential bearish trend due to weak on-chain demand. This factor may hinder short-term recovery prospects.
Technically, ADA shows a "golden cross" pattern from November, with the 50-day moving average at $0.891 above the 200-day moving average at $0.611, traditionally a bullish indicator. Although the MACD indicates slowing momentum, reduced selling pressure suggests possible upward movement.
Photo: TradingView
A substantial sell wall of 4.3 billion ADA presents a challenge that must be addressed for significant recovery. Nevertheless, Cardano's historical resilience may help it navigate through the current consolidation phase effectively.
ADA Eyes $1 by January 2025
Looking forward, experts anticipate developments in 2025, particularly Cardano's integration with Bitcoin’s OS Bridge, which could enhance liquidity in the DeFi sector and drive adoption. Price forecasts range from $4.17 to $15 if development objectives are met.
Shorter-term predictions suggest ADA might reach $1 by January 2025 and $2 by February. Sustained performance of Bitcoin around the $100,000 mark is expected to positively impact altcoins, providing additional momentum for Cardano.
Cardano faces competition in the smart contract domain, but its ongoing expansion of tokenized assets and distributed models strengthens its growth foundation. Key support is identified at $0.80, with resistance at $1.30 being crucial as the token progresses.