Cardano (ADA), a prominent player in the cryptocurrency space, has been showing signs of bullish momentum, but its price is facing key technical challenges. As 2024 winds down, many investors are keeping a close watch on ADA’s price action, wondering whether the asset can break through resistance levels and reach $1.50 or if it is heading toward a decline to $0.70. With the market in a constant state of flux and multiple factors influencing ADA’s trajectory, let’s take a closer look at the potential price forecast for Cardano.

Recent Price Movement and Resistance at $1.24

Since mid-2024, Cardano has shown impressive upward momentum. The price of ADA has been gradually climbing, especially since the beginning of November, when macro bullish sentiment in the crypto market was bolstered by the political shift with Donald Trump’s re-election. As a result, ADA has seen significant attention and higher trading volumes.

However, despite this positive sentiment, Cardano is currently encountering a tough resistance level just above $1.24. This resistance has prevented ADA from pushing further into bullish territory, creating a scenario where the price is currently in a consolidation phase. A breakthrough of this resistance would be a crucial step in ADA’s potential to surge further, but as of now, the market has shown signs of hesitation.

In terms of technical analysis, Cardano appears to be forming a potential head-and-shoulders pattern on the daily chart. This is often a bearish signal, suggesting a short-term price drop could be in the cards before any meaningful upward movement occurs. Along with this pattern, the daily Relative Strength Index (RSI) has formed a bearish divergence, hinting that the momentum is weakening.

Short-Term Outlook: Potential for a Drop

In the short term, ADA is likely to experience some downward pressure. The price has recently closed below the 50-day moving average (MA), signaling a loss of bullish momentum. As technical indicators suggest, ADA’s price could dip further in the coming weeks, potentially falling to a support range between $0.77 and $0.68 if the broader crypto market experiences a sell-off. These levels are crucial for ADA as they represent the last line of defense against a more significant downtrend.

Long-Term Fundamentals: Growing Web3 Ecosystem

Despite the short-term bearish signals, Cardano has significant long-term growth potential. The Cardano network has evolved into a vibrant hub for decentralized applications (dApps) and decentralized finance (DeFi) projects. As of now, the total value locked (TVL) on the Cardano network has surpassed $433 million, indicating a growing ecosystem.

Moreover, Cardano has recently implemented changes to its governance model through the CIP-1694 feature, part of the network’s ongoing evolution. This new governance approach is expected to attract more developers and users, further strengthening the foundation for Cardano’s growth.

One of the most promising indicators for Cardano’s future is the reduced circulating supply of ADA tokens. According to recent on-chain data from Santiment, whale addresses holding between 1 million and 10 million ADA tokens have purchased over 20 million coins in the last 48 hours, reflecting growing institutional interest in the network. With over 21.8 billion ADA tokens currently staked to secure the network, the circulating supply continues to decline, which could lead to upward price pressure in the long run.

Cardano’s Future: A Potential for Rebound in 2025

While short-term bearish trends may cause some concern, the fundamentals driving Cardano’s growth remain strong. With the decline in circulating supply and increasing network activity, ADA is well-positioned for a potential rebound in early 2025. A breakout above $1.24 could open the door to higher price targets, potentially moving toward $1.50 or even $2.00 if bullish momentum continues.

In the meantime, investors should keep an eye on market trends and the broader sentiment in the crypto space. The increasing interest in Cardano’s ecosystem, paired with a potential market rally in 2025, could provide the momentum necessary for ADA to regain its bullish trajectory.

Conclusion: Mixed Sentiments for Cardano’s Price

As we look ahead to 2025, Cardano’s price outlook remains mixed. The resistance at $1.24, combined with bearish technical patterns, could lead to a short-term price decline. However, the strong fundamentals, growing ecosystem, and reduced circulating supply position ADA for future growth. Investors should monitor key support levels around $0.77 and $0.68, as a rebound from these levels could signal the start of a new bullish phase for Cardano. For those with a longer-term perspective, Cardano’s continued evolution in the Web3 space offers promising prospects for growth.