- ADA has proven resilient, fending off bearish pressure and holding strong above $1, a level it has worked hard to recover from.
- With the excitement of a new year just around the corner, the stage is set for a potential upside.
Cardano (ADA) has posted triple-digit gains over the past 30 days, breaking away from a three-year slump to reclaim the $1 benchmark and secure the second-best altcoin spot.
The big players’dip‘To build up ADA, price action has yet to provide the strong bullish momentum many are hoping for.
Nonetheless, broader market optimism continues to put ADA in the speculative spotlight.
With key caps remaining firmly in the green and investors trying to mitigate risk as Bitcoin approaches critical psychological levels, could Cardano be a legitimate beneficiary of this momentum?
Important 3 weeks ahead of ADA
Just 20 trading days after the Trump pump, ADA surged past the $1 mark. Despite warning signs of a correction and many indicators pointing to excessive positions, Cardano bulls remained bullish, avoiding a major decline.
However, momentum slowed last week, with Bitcoin surpassing $100,000. This suggests that investors are becoming uncertain and cautious about altcoins’ current position in the market.
Therefore, unless Bitcoin mounts a strong rebound and holds $104,000 and turns the current price band into solid support, the market is likely to see near-term volatility.
But the next three weeks could see increased activity before the fourth quarter concludes and the euphoria of the new year begins.
ADA bulls should seize the window of opportunity to take advantage of any momentum while maintaining the current price.
Source: TradingView
Historically, December through February has been a period of high liquidity for Cardano. ADA continues to make significant moves and break through consolidation in each annual cycle.
If history holds true, ADA could likely break above $2 in the coming days and hit a new all-time high of $3.11 before the end of the year.
So should I buy dip?
Coincidence or not, the whale appears to be following this strategy, accumulating over 20.31 million ADA at an acquisition price of $1.21.
This massive accumulation appears to have incentivized a total of 391,000 addresses, which currently hold 4.95 billion ADA tokens, all hoping for a rebound to $2.
But it won’t be a walk in the park. Cardano would need more than 60% momentum to reach this goal at its current market value. This is a difficult hurdle, especially with the current market volatility, RSI still overbought and MACD crossover signaling possible bearish pressure ahead. .
So the key is to hold on to these factors until they stabilize. Otherwise, a small difference could cause Cardano to lose the $1 benchmark. This is a level that the bulls have been trying to regain for years.
“Consistent” whale support is important to absorb selling pressure from weak hands. These investors, fearful of a correction, may be seen as bankrupt even if prices fall further.
Read Cardano (ADA) price prediction for 2024-2025
So, if you are ‘buying’ Cardano and aiming for a breakout of $2, buying the dip now is a smart move for three reasons. Strong whale support, year-end expectations, and most importantly, patience.
These psychological factors play a key role in ensuring that the dollar level does not get out of hand.