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Cardano price has plunged for three consecutive days as the outlook for cryptocurrencies continues to worsen.
Cardano (ADA) extended its downtrend, falling to a low of $0.90, its lowest level since Jan. 1 and 33% below its 2024 high.
The downward momentum has prompted some whales to exit their positions. According to Ali Martinez, a popular crypto analyst on X, whales have sold over 70 million ADA tokens worth approximately $63 million.
Still, several catalysts could push ADA price higher in the coming months. First, as previously noted, Bitcoin price 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.
Further, Cardano is preparing major upgrades this year. The most notable ones will be the upcoming integration with BitcoinOS, which will unlock over $1.4 trillion in liquidity. The developers are also working on Midnight, a scaling project for the ecosystem.
Cardano may also benefit from the incoming Donald Trump administration, which is expected to adopt a lighter regulatory approach toward crypto. One potential impact could be the approval of a spot ADA ETF, which would introduce more institutional capital to Cardano.
Cardano price technicals point to more 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.
Additionally, Cardano has developed a break-and-retest pattern, another bullish continuation signal. The chart above 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.
The break-and-retest pattern occurred when the coin moved above the cup’s upper side and then retested it, confirming the bullish breakout.
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.
This article first appeared at crypto.news
