Cardano breaks out strongly, sparking debate about bullish prospects in 2025

Cardano (ADA) is making a strong mark this week as it rises to the leading position in terms of growth among the top cryptocurrencies.

As of the time of writing, ADA is trading around the threshold of 0.95 USD. Analysts are currently having heated debates about whether this coin has enough strength to maintain its upward momentum and advance further throughout 2025.

A notable highlight is that ADA has successfully surpassed important resistance levels that have constrained the upward trend since December 2024.

Cardano breaks through long-term resistance

Analyst Lark Davis stated that Cardano (ADA) has just broken through the long-term resistance level, while a "golden cross" pattern (golden cross) has appeared – a technical signal often regarded as a harbinger of a strong upward trend.

A "golden cross" occurs when the short-term moving average crosses above the long-term moving average. In the past, this signal has helped ADA break out by over 200%. Davis questions whether the current coincidence could open up a similar scenario in 2025.

At the time of writing, ADA is trading around 0.95 USD, up nearly 18% in a week and almost 10% in a month. Despite recently undergoing some adjustments, this coin is still about 85% higher than the bottom in June.

On-chain data shows that investors are accumulating strongly, while the open interest of futures contracts has also increased consecutively over the past few weeks. The relative strength index (RSI) is currently at 71 – the "overbought" zone according to technical measures.

Weekly ADA/USDT chart | Source: Lark Davis/XExperts believe that before moving further, the price of ADA may accumulate around the 0.90 USD region or make a slight correction to 0.84 USD to build a solid foundation for the next trend.

Comparison with previous cycles and investor trends

The Tap Tools analytics platform indicates that the current price action of Cardano is reminiscent of the previous cycle's explosion, when ADA once surged over 2,000%.

According to analysts, this impressive growth scale continues to fuel expectations for a new breakthrough, although it is difficult to replicate a similar level. In reality, recent market fluctuations have caused a segment of investors to shift their capital to other assets, but ADA still maintains its relative strength.

The RSI indicator has surpassed the 70 threshold, indicating a state of "overbought," yet simultaneously reflecting the persistence of the upward trend. Notably, large investors remain steadfast in increasing their positions despite this short-term signal. In just the past few weeks, wallets holding between 1 to 10 million ADA have accumulated over 120 million tokens.

The derivatives market has also seen active trading with a significant increase in open contracts for futures, indicating a growing speculative inflow. Some experts believe that the combination of whale accumulation and increased demand in the futures market is a signal of confidence that ADA may maintain a higher price range. However, short-term profit-taking pressure still exists and may continue as the market absorbs more new supply.

Cardano Ecosystem and Future Prospects

The advancements in the Cardano ecosystem are increasingly strengthening the positive outlook for ADA. The Hydra scaling solution promises to enhance transaction processing speed, while the Acropolis project focuses on optimizing the operational performance of nodes, helping the network to operate more flexibly and efficiently.

According to analysts, these upgrades not only improve the technical platform but also create significant attraction for the developer community. In addition, interest from financial institutions is increasing markedly, with many discussions about the potential launch of a Cardano ETF. If ADA is classified as a commodity by regulators, the ETF could be approved as early as 2025, expanding liquidity and providing a new access channel for traditional investors.

Globally, the efforts to apply Cardano are also making an impact. In Ethiopia, the Atala PRISM identification solution has been implemented in the education system, affirming the practical value of the technology. Alongside this, the number of staking wallets is continuously increasing, along with many new projects being launched, further strengthening the foundation for long-term development.

Experts believe that the combination of technical factors and the ecosystem is creating a solid launchpad for ADA. Although it may go through a short-term accumulation phase, the long-term growth momentum of this cryptocurrency is still being maintained.

Prospects for 2025

Cardano has just confirmed its technical strength by breaking through a key resistance level, rising to the area of 0.94 USD at the time of writing.

Although the "overbought" signals and profit-taking pressure may cause ADA to enter a short-term accumulation phase, the capital flow from large investors along with the vibrancy of the derivatives market provides additional support for the long-term outlook.

A series of upcoming upgrades, coupled with increasing interest from organizations, are helping ADA enter 2025 with a strong fundamental foundation and clear technical momentum.

The ability to recreate past "tsunami" price surges remains an open question, but analysts believe that Cardano is gradually consolidating its position to maintain its foothold in the market.

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