Strengthening against the backdrop of the market pullback
Cardano (ADA) experienced a short-term pullback after reaching a several-month high, but performed well—amid a general decline in the cryptocurrency market, it became one of the few assets among the top 50 that maintained an upward trend, rising 3.5% in 24 hours. Previously, ADA broke the $1.00 mark for the first time on Thursday, reaching a five-month high of $1.02. Although it later fell to the range of $0.89-$0.91, it still held the key breakthrough level.
Behind the pullback: macro signals and market liquidation
This market pullback is closely related to macroeconomic data and policy signals. According to CoinGlass data, the cryptocurrency market liquidation scale exceeded $1.05 billion in the past 24 hours. The U.S. Producer Price Index (PPI) rose 3.3% year-on-year, far exceeding the expected 2.5%, boosting the dollar's short-term rebound; at the same time, U.S. Treasury Secretary Scott Bensett announced that he would stop increasing strategic Bitcoin reserves (SBR) and would only expand reserves through asset seizures, which also affected market sentiment. As a result, Bitcoin fell to the support range of $117,000-$118,000 after reaching a historical high of $124,128, cooling the overall market.
Does historical trend suggest a 70% upside?
Despite short-term volatility, analysts are optimistic about ADA's long-term trend. Analyst Ali Martinez pointed out that since the rebound in the fourth quarter of 2024, ADA has been operating within a downward channel, having reached a multi-year high of $1.32 in December last year. After two previous attempts to break through the resistance level of $0.84, it finally succeeded; if this breakthrough is confirmed, the target price is expected to rise by 70% to $1.50.
Another analyst, Crypto Yhodda, mentioned that ADA's current trend is highly similar to the 2020-2021 cycle. After reaching a peak in 2018, ADA experienced an ABC corrective wave, consolidating within an expanding wedge pattern for two years, and after breaking through the resistance in 2020, it climbed all the way to the high of $3.09 in 2021.
In this cycle, ADA has been accumulating within the same pattern since 2022. After breaking through the upward resistance level at the end of 2024, it is trading in the middle-high area of the pattern, likely to challenge the resistance level of $1.80 again and set a new high.
Current situation: Steady support, weekly increase of 20%
As of the time of writing, ADA's latest trading price is $0.90, with a cumulative increase of 20% this week. Under the overall pullback pressure of the market, its performance in maintaining the key support level, combined with the reference value of historical trends, makes the market full of expectations for its subsequent upward space.
