Cardano Faces Slump, Anticipates December Launch for Potential Recovery

Cardano (ADA) is facing market instability, with its price nearing one-year lows. However, optimism is building with the upcoming December launch of the Midnight sidechain.

ADA is currently trading around $0.41, a 70% drop from its December 2024 high of $1.2.
Total value locked (TVL) has decreased by 36% in the past month to $186 million, while stablecoin liquidity is below $40 million.
The network faces criticism for low activity, and some predict ADA might fall out of the top 20 cryptocurrencies.
Founder Charles Hoskinson remains optimistic about the impact of the Midnight sidechain, which aims to boost ecosystem growth.

Technical analysis shows potential for a relief rally:

ADA is forming a falling-wedge pattern, indicating a possible bullish reversal.
The RSI is at 30, suggesting oversold conditions.
Key resistance levels are at $0.49 and $0.5097; breaking these could push prices to $0.50–$0.61.
If support at $0.39–$0.40 fails, ADA may drop to $0.277.

The Midnight launch is crucial for Cardano's 2025 outlook. Success could lead to a rebound in TVL and development activity, essential for proving real adoption. While ADA consolidates, oversold technicals and ecosystem upgrades hint at potential year-end growth.