- ADA has proven its resilience, fending off bearish pressure and holding strong above the $1 mark—a level it fought hard to reclaim.
- With the New Year excitement on the horizon, the stage is set for a potential surge.
Cardano [ADA] has soared with triple-digit gains over the past 30 days, breaking free from a three-year slump to reclaim the $1 benchmark and secure its spot as the second-best-performing altcoin.
While big players have taken advantage of the ‘dip’ to accumulate ADA, its price action has yet to deliver the robust bullish momentum many anticipated.
Nonetheless, the broader market optimism continues to keep ADA in the spotlight of speculation.
As major caps remain firmly in the green and investors seek to mitigate risks with Bitcoin nearing a critical psychological level, could Cardano emerge as a rightful beneficiary of this momentum?
Critical three weeks ahead for ADA
In just 20 trading days since the Trump-pump, ADA surged past the $1 mark. Despite warning signs of a correction, with many indicators pointing to overextended positions, Cardano bulls held strong, avoiding a major pullback.
However, the past week saw momentum slow, even with Bitcoin breaking $100K. This suggests that investors are uncertain about the altcoin’s position in the current market, with caution creeping in.
So, unless Bitcoin makes a strong rebound, holding $104K and flipping the current price band into solid support, the market is likely to see short-term fluctuations.
Yet, looking ahead, the next three weeks could see heightened activity before Q4 wraps up and the euphoria of the new year kicks in.
ADA bulls must seize this window of opportunity to capitalize on any momentum while holding the current price.
Source : TradingView
Historically, the December to February period has been a time of high liquidity for Cardano, with ADA consistently showing significant movement and breaking out of consolidation in each yearly cycle.
If history holds true, ADA could potentially break through $2 in the coming days, setting its sights on a new all-time high of $3.11 before the year concludes.
So, should you buy the dip?
Coincidence or not, whales appear to be following this strategy, accumulating over 20.31 million ADA at an acquisition price of $1.21.
This large-scale accumulation seems to have incentivized a total of 391K addresses, now holding 4.95 billion ADA tokens, all hoping for a rebound to $2.
Yet, it won’t be a walk in the park. For Cardano to reach this target from its current market value, it will need a push of over 60% — a tough hurdle, especially with the current market volatility, the RSI still in an overbought state, and a MACD crossover signaling potential bearish pressure ahead.
So, the key is to hold until these factors stabilize. Otherwise, a small divergence could cause Cardano to lose its $1 benchmark — a level bulls have struggled for years to reclaim.
“Consistent” whale support will be crucial to absorb selling pressure from weak hands. These investors, fearing a correction, may look to break even if the price dips further.
Read Cardano [ADA] Price Prediction 2024-2025
So, if you’re ‘long’ on Cardano and aiming for a $2 breakout, buying the dip now is a wise move for three reasons: strong whale backing, year-end anticipation, and, most importantly, the patience bulls have shown.
This psychological factor plays a key role in ensuring that the $1 level doesn’t slip away from their grasp.
