Cardano (ADA) Price Prediction: Technical Analysis Points to a 40% Crash, But a Surge to New ATH Could Follow

The Cardano price has dropped 50% from its peak in November, and the weekly chart indicates a 40% decline. The chart also suggests an eventual surge after the coin reaches this low.

The Cardano (ADA) price has dropped 50% from its peak in November, and the weekly chart indicates a 40% decline. The chart also suggests an eventual surge after the coin reaches this low.

Cardano Price Technical Analysis

The coin was trading at $0.65, giving it a market cap of over $24 billion.

The weekly chart shows that the ADA price crashed in the past few months. This decline coincided with the price action of other cryptocurrencies like Solana, XRP, and Ethereum.

The chart reveals a giant megaphone pattern, characterized by two ascending and diverging trendlines. It’s called a megaphone because it resembles this shape.

Inside this megaphone, the Cardano price forms two falling wedge patterns, each leading to a bullish breakout. The first wedge happened between January and September 2023, while the second one occurred between December 2023 and October 2024.

The current wedge started last November and will continue until it retests the megaphone’s lower line. In most cases, assets typically go through at least three cycles before experiencing a rebound.

Therefore, the most likely scenario is where the ADA price drops to $0.40 and then stages a strong comeback afterward. Such a move would likely see it retest its all-time high of $3.150, which is about 340% above the current level.

ADA Price Technical Analysis Chart by Tradingview

What Next For Cardano?

The eventual Cardano price recovery to its all-time high is driven by several catalysts. First, there is the upcoming zero-knowledge-based Bitcoin staking solution that will come through its BitcoinOS integration.

Just this week, BitcoinOS executed the first bridgeless BTC transfer between Bitcoin and Cardano. If this is successful on a large scale, Cardano believes that it will add billions of dollars in assets to the Cardano network.

First, the BOS team locked 1 BTC on Bitcoin L1 using our BitSNARK protocol. We then wrapped it into a new unchained token called “xBTC.”xBTC is an industry first: non-custodial, cryptographic, programmable, and lives directly on Bitcoin – much like wETH on Ethereum.pic.twitter.com/D5n8aEuGKU

The other catalyst will be the potential approval of a spot ADA ETF by the Securities and Exchange Commission (SEC). While ADA ETFs may not attract a lot of inflows over time, its approval may generate more hype.

Additionally, data shows a significant movement of ADA tokens to staking pools, with 242 million coins, valued at $160 million in the last 30 days, an encouraging indicator.

Cardano will also benefit from the upcoming Bitcoin price surge. Bitcoin is expected to rise due to robust technical indicators and heightened demand for spot ETFs.