Cardano Price Breakout Raises Questions Over 2025 Rally

Cardano (ADA) has displayed a significant upside in price this week, as it emerged with highest weekly gains among the top crypto coins this week.

At the time of writing, it traded near $0.95, with analysts debating whether the token could sustain momentum well ahead into 2025.

For context, ADA has moved through resistance levels that had capped growth since December.

Cardano Price Breakout Above Long Resistance

Analyst Lark Davis said the Cardano price broke above long-term resistance while forming a golden cross.

A golden cross occurs when a shorter moving average crosses above a longer one, often seen as a bullish sign.

Davis noted that during the last occurrence, ADA gained more than 200%. He questioned whether the current alignment could produce a similar outcome in 2025.

At the time of writing, the Cardano price was around $0.95, up nearly 18% in the past week and almost 10% over the past month.

It also remained nearly 85% higher than its June lows despite the recent pullback. On-chain data showed accumulation among investors, while futures open interest increased in recent weeks.

The Relative Strength Index (RSI) was near 71 at press time, suggesting overbought conditions.

Analysts said the Cardano price might consolidate near $0.90 or pull back to $0.84 before attempting further advances.

Market Comparisons and Trader Positioning

Analytics platform Tap Tools compared the current Cardano price action to ADA’s performance during the last bull run. At that time, ADA surged by more than 2,000%.

Analysts said the scale of that move set expectations for another significant rally, though not necessarily to the same degree.

Market volatility encouraged some investors to rotate into other assets. Still, the Cardano price maintained relative strength at press time.

With the RSI above 70, analysts said the token was stretched but showed resilience.

Large investors increased positions despite near-term overbought conditions. Wallets holding between one and ten Million ADA accumulated more than 120 Million tokens in recent weeks.

Futures markets also showed rising open interest, which indicated growing speculation on further moves.

Some analysts said the combination of whale accumulation and futures interest suggested confidence in ADA’s potential to sustain higher levels.

However, they noted that short-term pressure could persist as the market absorbed profit-taking.

Ecosystem Growth and Forward Outlook

Developments within the Cardano network added to optimism. Hydra, a scaling solution, aimed to increase transaction throughput, while Project Acropolis targeted node performance improvements.

Analysts said these upgrades could enhance efficiency and attract more developers to the ecosystem.

Institutional interest also gained traction. Discussions continued around a potential Cardano exchange-traded fund.

Analysts said approval was possible by 2025 if regulators classified ADA as a commodity. An ETF could expand liquidity and offer traditional investors new access points.

Global adoption efforts advanced as well. Ethiopia integrated Cardano’s Atala PRISM identity solution into its education sector.

The growing number of staking wallets and new projects on the network reinforced long-term expansion.

Together, these technical and ecosystem factors supported optimism about ADA’s trajectory. Analysts said that while near-term consolidation appeared likely, long-term growth drivers remained in place.

Outlook for The Coming Year

The Cardano price showed technical strength by breaking resistance and reaching $0.94 at the time of writing.

Analysts said overbought signals and profit-taking could lead to short-term consolidation, but accumulation by large holders and futures positioning supported the longer-term case.

With upgrades planned and institutional interest building, ADA entered 2025 with both technical and fundamental momentum.

Whether the token could repeat past rallies remained uncertain, but analysts said its setup suggested sustained relevance in the market.