Cardano (ADA) is struggling to maintain the bullish momentum it has experienced in recent weeks, with the price still around 67% below the all-time high of $3.09 reached during the bullish period of 2021.
Despite this significant gap, analysts believe the potential for a strong price recovery exists in the coming weeks and months ahead of the new year.
Cardano is consolidating above major moving averages and preparing for a breakout.
Providing insight into Cardano’s current price action, Trend Rider, a prominent analyst at social media platform main.
However, he highlighted that Cardano’s price was firming above its moving average, suggesting it was preparing for a potential breakout by “shaking off its weak hands.”
Trend Rider expects the bullish momentum to resume soon, predicting that if Cardano price breaks the $1.25 resistance level, it could quickly surge to the $3 level and inch closer to the previous record high.
Adding to the bullish outlook, analyst Ali Martinez pointed out that Cardano began its second rise in the week of February 1, 2021, after experiencing a 44% correction.
Given that ADA has already undergone a 43% correction recently, the analyst suggests that ADA’s next upward move is only 2-3 weeks away and the target could be $6.
Analysts identify key support and price targets.
Another analyst, AV Sebastian, also suggested that the recent price decline may be over and that Cardano price is ready to break out of the triangle pattern. He emphasized that the last two candles were particularly strong and expects a significant rally ahead.
Analyzing short-term price movements, several analysts noted that ADA is showing a “very bullish market structure” on the daily time frame. A double bottom formation is observed on the chart, leading to a breakout and V-shaped recovery along the downward channel.
Additionally, a retest of the key support area at $1.3886 seems inevitable for the price of ADA in the near term, which is believed to lead to an upward price trend with a key target of $1.7748.
Additional areas of support have also been identified and the $0.824 level will be important to observe in early 2025. Holding this support could unlock significant upside potential, and analysts see May 2025 as a key window to achieve that goal.
At the time of writing, ADA is trading at $1.14, up 1.13% in 24 hours.
Featured image of DALL-E, chart from TradingView.com