Cardano Price Drops for Three Consecutive Days Amid Worsening Crypto Outlook

Cardano’s price has plummeted for three consecutive days, hitting a low of $0.90 – its lowest level since January 1 and 33% below its 2024 high. This downtrend has prompted some whales to exit their positions, with over 70 million ADA tokens worth approximately $63 million being sold.

Upcoming Catalysts Could Push ADA Price Higher

Despite the current downturn, several catalysts could push the ADA price higher in the coming months. One key factor is the Bitcoin price, which has multiple tailwinds, including ETF purchases, falling exchange balances, and a bullish pennant pattern. A BTC rebound would likely translate to gains for popular altcoins like Cardano and Solana.

Cardano is also preparing major upgrades this year, including the integration with BitcoinOS, which will unlock over $1.4 trillion in liquidity. The developers are working on Midnight, a scaling project for the ecosystem. Additionally, the incoming Donald Trump administration is expected to adopt a lighter regulatory approach toward crypto, which could lead to the approval of a spot ADA ETF, introducing more institutional capital to Cardano.

Cardano Price Technicals Indicate Potential Gains

The daily chart shows that Cardano’s price could see further upside in the coming weeks. The coin is gradually forming a bullish pennant pattern, which consists of a long vertical line followed by a triangle formation. This recent pullback appears to be part of the pennant formation. Cryptocurrencies and stocks often experience a strong bullish breakout after forming this pattern.

Cardano has also developed a break-and-retest pattern, another bullish continuation signal. The chart illustrates that ADA formed a cup and handle pattern, with the upper side of the cup at $0.805. Like the pennant, a cup and handle is a well-known continuation pattern.

These patterns suggest further Cardano gains, particularly in the first quarter of the year. If this scenario unfolds, ADA price could jump to $1.410, corresponding to the 61.8% Fibonacci extension level, representing a potential 60% increase from the current level.

Key factors that could drive Cardano’s price higher:

  • Bitcoin price rebound
  • Integration with BitcoinOS
  • Midnight scaling project
  • Lighter regulatory approach toward crypto
  • Potential approval of a spot ADA ETF

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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