Cardano is witnessing a surge in interest as its price jumps by 10%, igniting hopes among investors eager to see if ADA can finally break above the $1 threshold. After a recent period of stagnation, the start of 2025 seems to be unfolding new possibilities for this compelling cryptocurrency. With many altcoins experiencing double-digit gains, Cardano stands out as it approaches this significant price point after weeks of lackluster performance.
The price action of Cardano tells a fascinating tale. While Bitcoin reached a remarkable new high of $108K in mid-December, ADA took a different path, entering a bearish streak as early as the month’s beginning. Having peaked at $1.25, profit-taking soon followed, particularly as indicators showed ADA was overbought. Additionally, the ADA/BTC pair has shown lower lows, indicating a lack of enthusiasm among Bitcoin holders to invest in Cardano.
But as we step into January, a sense of renewed energy envelops the market. Investors are diversifying their portfolios as the fourth quarter of 2024 fades into memory. Short-sellers faced unexpected liquidations to the tune of $107 million, marking a bullish shift that also benefited Cardano—resulting in $1.78 million getting squeezed out of short positions.
However, let’s not put the cart before the horse. For Cardano, crossing the $1 barrier in the coming days isn’t just another line on a chart; it symbolizes a pivotal shift that could trigger a wave of FOMO (fear of missing out), attracting new investments and reigniting interest from those looking to diversify.
Holding this critical level at $1 will be a true test for Cardano. Previous attempts in December to maintain this price were unsuccessful, revealing a shaky market foundation. In contrast, Ripple (XRP) managed to break through significant psychological ceilings, staying steady at $2 even amid market turmoil. This disparity may give potential investors pause for thought.
Just before entering the new year, substantial holders moved 3.5 million ADA off exchanges, igniting the recent upswing while forcing short-sellers to hastily buy back the asset. Despite this surge, solidifying the $1 price point as a reliable support remains a job half done.
Can the ADA/BTC pair mirror the robust performance of November? Without that momentum, even savvy whales pulling for Cardano may find it challenging to maintain the rally. The next few days are crucial; if Bitcoin keeps its activity steady, investors may channel some capital into ADA. Yet, the real question will be whether those large holders can not only breach $1 but also ensure it remains firm against selling pressure.
As this price point attracts more attention, the atmosphere is electric with possibility, but caution is also warranted. If Cardano can establish a stable range above $1, it could redefine its place in the market and draw in the support it desperately needs. Otherwise, this short-lived rally could see ADA returning to its previous state of sluggishness.