Cardano (ADA), a leading altcoin in the crypto market, is experiencing significant attention from both retail and institutional investors, as well as whales. On December 10, 2024, ADA was trading around $1.01, following a dramatic 25% retracement over the past three days. Despite the short-term decline, ADA continues to show strong underlying fundamentals, and the total value locked (TVL) on the Cardano network has recently surged to $555 million, signaling growing interest in the ecosystem.

The current volatility in Cardano’s price comes amid a larger market trend, driven by the ongoing “altseason,” as funds rotate away from Bitcoin (BTC) into altcoins. This surge in interest is particularly visible among whales, large investors, who have been increasing their positions in ADA. Over the past few weeks, the market has seen significant liquidations, with $24 million wiped out from leveraged positions in the past 24 hours alone, mostly from long traders. Furthermore, Cardano’s Futures Open Interest (OI) dropped by over 26%, now hovering around $832 million, a sign of the heightened market uncertainty.

Cardano Price Prediction: What’s Next?

As the price retraced to the $1 level, the big question for investors is whether ADA can hold this support or face further declines. A key technical pattern to watch is Cardano’s megaphone formation on the weekly chart. If the price fails to maintain the $1 support, a further drop toward the $0.81 mark could be in the cards. However, the broader market sentiment during this “altseason” and Cardano’s growing popularity suggest that ADA may still be in a prime position for future growth.

Crypto analyst Ali Martinez has been closely monitoring Cardano’s price action and highlighted that the current price movement mirrors patterns observed in the 2020/2021 bull cycle. According to Martinez, even if ADA’s price dips below $0.80, it could still present a buying opportunity, as the altcoin is expected to hit new all-time highs during this ongoing bull cycle. He has set a target range for ADA’s price between $4 and $6, aligning with the positive long-term outlook for the cryptocurrency.

Cardano’s Fundamentals Strengthen as TVL Hits New Heights

In addition to ADA’s technical chart patterns, its fundamental growth cannot be overlooked. The TVL on the Cardano network, which represents the total amount of cryptocurrency locked in decentralized applications (dApps) on the network, has recently reached over $555 million. This is a strong signal of the increasing adoption of Cardano’s blockchain technology.

In addition to growing TVL, the Cardano network has seen a rise in daily active addresses, which now exceed 54,000. This growth is reflective of the increasing use of Cardano for decentralized finance (DeFi) activities, further strengthening its ecosystem and market position.

The rise in TVL and active users can also be attributed to Cardano’s founder, Charles Hoskinson, who has been actively engaging with the U.S. government, particularly in light of President-elect Donald Trump’s victory. Hoskinson has worked closely with Trump’s transition team to ensure that crypto-friendly regulations are put in place, which could provide a significant boost to Cardano’s future growth prospects.

Whale Activity Fuels ADA’s Momentum

Whales have become increasingly involved in Cardano’s market activity, with large investors accumulating significant amounts of ADA. These whales have been attracted by the increasing fundamentals of the Cardano network, as well as the relatively low price of ADA compared to other major cryptocurrencies. The growing presence of whales in the market is further evident in the surge in Cardano’s TVL and the increasing number of active addresses on the network.

As whales continue to accumulate ADA, this activity may lead to an increase in Cardano’s price over the long term, especially if the broader cryptocurrency market continues to favor altcoins in the coming months.

Conclusion

Cardano’s price remains volatile, with a recent retracement to the $1 support level. However, the fundamentals behind the ADA network are stronger than ever, as evidenced by the rise in TVL and active user adoption. With whales continuing to increase their exposure to ADA and crypto-friendly regulations potentially on the horizon, Cardano may be poised for a breakout in the near future.

Experts predict that ADA’s price could eventually hit new all-time highs, with some forecasting a target range of $4 to $6 in the next bull cycle. As Cardano continues to grow in both popularity and adoption, investors and enthusiasts alike are keeping a close eye on the network’s next moves, making it one of the most exciting altcoins to watch in the coming months.