$ADA

Cardano (ADA) is making a strong impact this week as it rises to lead the growth among top cryptocurrencies.

As of the time of writing, ADA is trading around $0.95. Analysts are currently debating vigorously whether this coin has enough strength to maintain its breakout momentum and go further throughout 2025.

A noteworthy highlight is that ADA has successfully surpassed important resistance levels that have hindered the upward trend since December 2024.

Cardano breaks through long-term resistance

Analyst Lark Davis stated that Cardano (ADA) has just broken through a long-term resistance level and a 'golden cross' pattern has emerged – a technical signal often considered a harbinger of a strong upward trend.

'Golden cross' occurs when the short-term moving average crosses above the long-term moving average. In the past, this signal helped ADA breakout by over 200%. Davis questions whether the current coincidence could open up a similar scenario in 2025.

At the time of writing, ADA is trading around $0.95, up nearly 18% in a week and nearly 10% in a month. Despite recently experiencing some corrective phases, this coin is still about 85% higher than its low in June.

On-chain data shows that investors are accumulating strongly, while the open interest of futures contracts has also increased consecutively over the past few weeks. The Relative Strength Index (RSI) is currently at 71 – the 'overbought' zone according to technical metrics.

Experts believe that before moving further, the price of ADA may accumulate around the $0.90 area or slightly adjust to $0.84 to create a solid foundation for the next trend.

The analysis platform Tap Tools indicates that Cardano's current price action is reminiscent of the explosive phase in the previous cycle, when ADA increased by over 2,000%.

According to analysts, this impressive growth scale continues to nurture expectations for a new breakout, although it is difficult to replicate a similar level. In fact, recent market volatility has caused some investors to shift funds to other assets, but ADA still maintains relative strength.

The RSI indicator has surpassed the 70 threshold, indicating an 'overbought' condition, but at the same time reflecting the resilience of the upward trend. Notably, large investors continue to steadfastly increase their positions despite this short-term signal. In just the past few weeks, wallets holding between 1 to 10 million ADA have accumulated more than 120 million tokens.

The derivatives market is also witnessing vibrancy with a significant increase in open interest for futures contracts, indicating a growing speculative inflow. Some experts believe that the combination of whale accumulation and increasing demand in the futures market is a signal of confidence that ADA can maintain higher price levels. However, short-term profit-taking pressure is still present and may continue as the market absorbs more new supply.

The Cardano ecosystem and its future prospects

Advancements in the Cardano ecosystem are increasingly reinforcing positive prospects for ADA. The Hydra scaling solution promises to enhance transaction processing speed, while the Acropolis project focuses on optimizing the operational efficiency of nodes, making the network more agile and effective.

According to analysts, these upgrades not only improve the technical foundation but also create significant attraction for the developer community. Additionally, interest from financial institutions is clearly increasing, with many discussions about the potential launch of a Cardano ETF. If ADA is classified as a commodity by regulators, the ETF could be approved soon in 2025, expanding liquidity and providing a new access channel for traditional investors.

Globally, efforts to apply Cardano are also making an impact. In Ethiopia, the Atala PRISM identification solution has been implemented in the education system, affirming the practical value of the technology. Concurrently, the number of staking wallets is continuously increasing along with many new projects being launched, further strengthening the foundation for long-term development.

Experts believe that the combination of technical factors and the ecosystem is creating a solid launchpad for ADA. While it may go through a short-term accumulation phase, the long-term growth momentum of this cryptocurrency remains intact.

Prospects for 2025

Cardano has just affirmed its technical strength by breaking through an important resistance level, reaching the $0.94 zone at the time of writing.

Although 'overbought' signals and profit-taking pressure may lead ADA into a short-term accumulation phase, the influx of funds from large investors and the vibrancy of the derivatives market provide additional support for long-term prospects.

A series of upcoming upgrades, combined with increasing interest from institutions, are helping ADA enter 2025 with a strong fundamental base and clear technical momentum.

The ability to replicate past 'tsunami' price surges remains a question mark, but analysts believe Cardano is gradually solidifying its position to maintain a foothold in the market.