Cardano (ADA) has experienced a sharp decline in market value over the past week, dropping 17%. This downturn has left investors divided on its short-term prospects, with some experts offering optimistic predictions while others highlight ongoing bearish trends.
As of today, ADA is trading at $1.03 after dropping from $1.30 last week. Amid the volatility, prominent analysts are discussing Cardano’s potential price trajectory.
Cardano’s Path to $3: Bullish Projections
Dan Gambardello, a well-known Cardano advocate, remains optimistic about ADA’s recovery, forecasting a potential surge to $3 within the next month. Citing the cryptocurrency’s historical price behavior, particularly its rally between Q4 2020 and Q1 2021, Gambardello suggested that ADA could “realistically” hit $3 by January 10, 2025.
However, he added a more measured perspective, stating that January 24 might be a more achievable target, as his forecasts often lean slightly prematurely. While his prediction has sparked excitement among Cardano enthusiasts, it is tempered by the realities of current market conditions.
The Cardano pump to $2 will likely be here sooner than most people realize.
And according to cycle data, the pump back to $3 could realistically occur by January 10.
Since I’m usually slightly early with these things, let’s say January 24th.
— Dan Gambardello (@cryptorecruitr) December 10, 2024
Key Challenges for ADA’s Bull Run
In contrast to Gambardello’s bullish stance, analyst Ali Martinez emphasizes the critical support levels ADA must maintain to regain upward momentum. According to Martinez, the $1.20 level is a crucial price point, supported by approximately 93,000 addresses holding 2.54 billion ADA.
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Failure to hold above this support could lead to a significant downturn, potentially dragging ADA below $1. Martinez noted that bearish sentiment remains prevalent, with 64.68% of ADA holders facing unrealized losses. This situation could contribute to additional selling pressure, even during minor price rebounds.
On the brighter side, a demand zone between $0.98 and $1.02 offers some reassurance. This range, which involves 41,720 addresses holding 1.03 billion ADA, may provide temporary stability if the cryptocurrency faces further downward pressure.
On-Chain Metrics Signal Reduced Activity
On-chain data paints a concerning picture of Cardano’s short-term performance. Metrics from IntoTheBlock highlight significant drops in network activity. Over the past week, the creation of new addresses has declined by 44.90%, while active addresses have fallen by 38.66%.
Additionally, the number of zero-balance addresses decreased by 46.15%, reflecting reduced participation on the network. These figures suggest a slowdown in transactional activity, further emphasizing the challenges ADA faces in regaining market confidence.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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