Cardano price has recovered modestly after crashing to $0.7637 in December. It has jumped by 45% and was trading at $1.1040 on Tuesday morning. Will the ADA coin continue rising in the coming days and possibly hit $2?
Cardano price is facing numerous catalysts that may push it higher in the near term. First, as we wrote in the recent ADA price forecast, it is a highly undervalued token based on the market value to realized value (MVRV) Z score. Its score still stands at 2.5, indicating the token is highly undervalued.
There are rising odds that the Securities and Exchange Commission (SEC) will approve a spot ADA ETF in 2025. A new Polymarket poll puts the odds at 42%, higher than last week’s low of just 10%.
Most analysts believe that Paul Atkins will be more flexible as the SEC chair than Gary Gensler, who focused on lawsuits. During his tenure, he sued companies like Coinbase, Binance, Immutable, Kraken, and Uniswap.
A spot Cardano ETF would likely be successful since it is one of the biggest cryptocurrencies in the industry, with a market cap of over $34 billion.
Like other cryptocurrencies, Cardano will likely benefit from the ongoing January Effect, where assets rise in January after December’s tax loss harvesting. Historical data shows that the first quarter is usually the second-most profitable period for cryptocurrencies after Q4.
Cardano also has other catalysts. The network is about to incorporate BitcoinOS, enabling it to handle Bitcoin transactions. It is also about to launch Midnight, a zero-knowledge scaling solution that could supercharge its adoption.
Cardano price analysis
ADA price bottomed at $0.7623 in the recent crash. It has now bounced back and moved above the key psychological point of $1, a positive sign for the coin. Cardano has also moved above the 50-day and 100-day Exponential Moving Averages (EMA).
It is also forming a tiny bullish flag chart pattern, a popular continuation sign. Therefore, Cardano’s price will likely continue rising, with the initial target being at $1.30, the highest point last year.
If Cardano continues rising, the next point to watch will be $1.5, followed by $2. This rally may happen in the first quarter as Paul Atkins stamps his authority at the SEC. On the flip side, a drop below the support at $0.9 will invalidate the bearish view
