Cardano Price Poised for Comeback Amid Rare Chart Pattern

Despite trading sideways for most of the month, Cardano‘s price could be on the verge of a comeback in the coming weeks, thanks to a rare chart pattern. Currently trading at $1.06, ADA has experienced a nearly 20% decline from its highest level this year.

Market Performance and DeFi Ecosystem

The pullback mirrors the performance of other popular layer-1 cryptocurrencies, such as Avalanche and Binance Coin, which have also retreated from their year-to-date highs. Cardano’s drop coincided with a decline in the total value locked (TVL) within its decentralized finance ecosystem, now holding over $597 million in total assets.

The largest protocols in Cardano’s ecosystem include Liqwid, Minswap, Indigo, and Splash Protocol. However, whale activity for Cardano has slowed, and the number of active addresses over the past 24 hours is below 43,000. Meanwhile, open interest in the futures market has continued to decline.

Potential Catalysts for Price Growth

Several catalysts could push Cardano’s price higher in the short term. These include:

  • Rising crypto demand, highlighted by Bitcoin’s surge past $106,000, which could support ADA.
  • A potential spot ADA ETF listing as early as 2025.
  • The “Santa Claus rally,” a phenomenon where asset prices tend to rise ahead of Christmas Day.

Chart Patterns and Technical Analysis

Cardano’s price has formed a rare chart pattern, consisting of a bullish pennant pattern, which is nearing its confluence point, suggesting a potential bullish breakout. Additionally, the coin has formed a golden cross pattern, where the 50-day and 200-day Exponential Moving Averages have made a bullish crossover.

This rare chart pattern could lead to a strong bullish breakout in the coming days, potentially pushing Cardano’s price to $1.325, its highest point this year, representing a 23% increase from its current level.

However, a drop below the support at $1.00 would invalidate the bullish outlook. As the cryptocurrency market continues to evolve, it’s essential to stay informed about the latest developments and trends.

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