Cardano’s price might be navigating a tough technical bear market, but there are four compelling reasons why this coin could experience a significant rebound in 2025.
Currently, Cardano (ADA) seems to be trading around $0.870, which is down approximately 35% from its peak in 2024. However, several factors could potentially reverse its recent downturn and lead to a rally.
Firstly, the much-anticipated integration with BitcoinOS in 2025 opens up a staggering $1.5 trillion market opportunity. This exciting development is expected to enhance liquidity within Cardano’s decentralized finance ecosystem, which could lead to an increase in its total value locked (TVL). Historically, Cardano’s TVL has lagged behind that of other popular blockchains like Solana and Base, so this integration could level the playing field.
Secondly, Cardano seems to be undervalued, reflected in its Market Value to Realized Value (MVRV). Recent data from IntoTheBlock indicates that the MVRV has dipped from a high of 1.90 to 1.30. This ratio provides insight into how a cryptocurrency’s current market value compares to its realized value. Assets with an MVRV below 3.90 are often viewed as fairly valued, suggesting there’s room for growth in ADA’s price.
As the third catalyst, the launch of the Midnight mainnet is set to take place in 2025, with a testnet already in operation. Midnight is a privacy-centric project utilizing zero-knowledge proofs, which heightens the security and confidentiality of transactions. Cardano’s Stake Pool Operators will be integral to securing block production and enhancing data security, potentially boosting ADA’s value leading up to its launch.
Lastly, Cardano’s strong technical indicators suggest an upcoming rebound. The daily chart shows that the price has pulled back nearly 35% from its highest levels this year, and it has dipped below the top support level according to the Murrey Math Lines tool. Notably, Cardano has formed a falling wedge chart pattern, which is recognized as a bullish signal in the market. This pattern is characterized by two converging trendlines, indicating that a significant rebound may be just around the corner.
ADA has maintained its position above the 100-day Exponential Moving Average and the 50% Fibonacci Retracement point, painting a bullish outlook for the price. The initial target for Cardano’s price could be the year-to-date high of $1.326, with an ambitious psychological target at $2 following.
So, whether you’re a seasoned investor or just dropping by to check on the latest trends, there’s a palpable sense of optimism surrounding Cardano as we look toward 2025. Keep an eye on these developments, as they could be instrumental in shaking off the current slump and propelling Cardano to new heights.
