Cardano Looks Ready for Takeoff as Analyst Targets $5 Level
- Cardano trades above MA200 and EMA233, signaling strong bullish momentum with a possible breakout toward the $5 target.
- An analyst sees ADA’s recent dip as a shakeout before a 2025 bull run and new all-time highs.
Cardano (ADA) appears to be poised for a major comeback after the crypto market correction that rocked the market in recent hours.
While many digital assets are still recovering, analyst Master Ananda sees strong signs that Cardano could be one of the next stars of the 2025 bull cycle, potentially even heading towards the $5 level.
According to his technical analysis, ADA is now trading above the 200-day moving average (MA200) and 233-day moving average (EMA233) on the weekly timeframe, two key levels that often mark the boundary between long-term uptrends and downtrends.
“A weekly close above these two levels would confirm continued upside. Anything bearish is now a thing of the past,” Master Ananda wrote in his report.
He believes the recent sharp correction was simply a “shakeout,” a moment when the market weeds out weak traders before a major upward movement begins.
Cardano Shows Familiar Patterns Ahead of a Potential Major Rally
In Ananda’s view, Cardano’s current price structure exhibits a pattern similar to that seen before the strong surge in the previous year.
The August 2024 support level is now functioning as a double-bottom pattern, while the October 2023 low is also back in action. Historically, whenever ADA touches that area, a long-term bullish wave always follows.
However, what makes this situation different is the market conditions, which are considered more mature and stable.
“When the weekly price is above the 200-day moving average (MA200) and 233-day moving average (EMA233), the market is usually very bullish. An uptrend can form quickly,” he said.
He also added that although the uptrend is not yet fully visible, this is an interesting moment because the next bullish cycle could potentially begin at any time.
Furthermore, the latest market data also shows a quite interesting combination. ADA’s price is currently around $0.6421, up 2.45% in the last 4 hours, although it is still down 1.06% in 24 hours and 23.68% in the last 7 days.
Trading activity reached $435.16 million with a market capitalization of $23.01 billion. Meanwhile, open interest fell by around 10.73% to $701.14 million, indicating a clearing of leveraged positions following extreme volatility.
Growing Trust and Expanding Reach Signal ADA’s Next Phase
Meanwhile, on-chain indicators and ecosystem development also reinforce the positive narrative for Cardano. CNF reported that in the past month, wrapped ADA on Coinbase’s Base network surged from 1.7 million to 9.56 million units.
This increase is considered to reflect growing confidence in the Cardano network among institutional and retail investors, especially amid the shift in funds from Bitcoin and XRP.
Furthermore, Brave’s move to add Cardano to its wallet has also provided a new impetus for adoption. Now, more than 100 million Brave users can access ADA and Cardano’s native assets directly without the need for additional extensions.
They can even swap tokens and participate in network governance. This integration makes Cardano one of the most accessible blockchains among major platforms.
Master Ananda concluded his analysis with a relatively optimistic outlook. He called this consolidation phase merely “the calm before the bullish storm.”
If the scenario plays out according to the technical patterns he’s monitoring, Cardano has the potential to experience a major bullish phase in the coming weeks and months.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street giants collectively raise rate hike forecasts, US Treasury futures continue to fall, gold drops over 1% to break 4000
After the US October CPI exceeded expectations, Goldman Sachs and Nomura added a forecast for an interest rate hike in March next year, while Deutsche Bank included a forecast for a rate hike in January next year. Currently, the market has fully priced in a 25 basis point rate hike in December, with a 13% probability for a 50 basis point hike. On Wednesday, the US Treasury spot market was closed, but Treasury futures continued to fall, with corresponding yields rising by about 2 to 4 basis points, and spot gold came under pressure, dropping by 1.1%.
No Need to Worry About the Cooling Down of AI Data Center Construction? The US Import Boom Is Unlikely to Subside in the Short Term, Real Impact May Come in 2029
It takes an average of 4.8 years from finalizing investment to starting construction of a data center project, and an additional 2.6 years from construction start to becoming operational. Servers usually cannot be installed until after the building structure and racks are completed. For trade partners such as Taiwan (China), South Korea, and Mexico who rely on US data center supply chain demand, the inertia in construction timelines provides at least a one- to two-year buffer for future exports.
Federal Reserve Major Debate: When Should the Tenure of “Number Three” Williams End?
The main point of contention is whether Williams should step down in June 2028, upon completing a full 10-year term, or in June 2027, when he reaches the mandatory retirement age of 65. Analysts point out that the Federal Reserve Board holds ultimate discretion; if he leaves early, Fed Chair Waller would be able to assert greater control over the appointment to this critical position. However, forcing Williams to shorten his term could easily be interpreted as political manipulation. Williams himself is expected to serve until June 2028.
Crypto prices
More
