The Cardano (ADA) price is currently holding above a key level of support and its reaction to this level could say a lot about where ADA is headed in the medium term.
Last just under $0.68, the Cardano price is hovering just above its 200DMA, having bounced from this key support level on Monday.
The 200DMA has historically been one of the most important technical levels for the Cardano price.
During the 2020 to 2021 bull market, bounces at the 200DMA reliably occurred ahead of fresh pushes to new record highs.
Meanwhile, in 2023 and 2024, convincing breaks above or below the 200DMA were good indicators of medium-term gain or medium-term pain.
So, could Cardano bounce from its 200DMA and be on course to cruise to fresh multi-year highs above $1.30?
Or could Cardano be about to slide under its 200DMA, signifying a period of pain that could see it drop back to its mid-2024 lows in the $0.30 region?
Cardano Price – Where is it Headed in 2025?
Right now, the bearish case for the Cardano price seems more likely. Bitcoin (BTC) just broke below key support in the $90,000 area and this could be the start of a negative run for the broader crypto market.
The macro landscape looks difficult this year, with tariff/trade wars coming, US government austerity (thanks to DOGE cuts) that could weigh on growth, still sticky inflation and a Fed that is, as a result, reluctant to cut rates further.
Meanwhile, though 2025 could be a record year for crypto adoption thanks to the new pro-crypto US administration’s arrival, progress on flagship policies like the strategic Bitcoin reserve is likely to be slower than the market wants.
That likely explains why Bitcoin is coming off, and when Bitcoin swoons, cryptos like Cardano are likely to go with it.
Traders should thus brace for the Cardano price to soon dip below its 200DMA, and this could be the start of a medium-term drop back towards pre-US Presidential election levels in the mid-$0.30s.
However, notable Cardano-specific catalyst could interrupt the likely near-term bearish trend.
These include a much-hyped meeting between Cardano founder Charles Hoskinson and a VIP in the Trump administration next week.
Some are speculating that this could be Elon Musk, and using Cardano as the blockchain ledger for US government transactions could be on the meeting agenda.
If this is an idea that actually starts gaining some traction, this could be a massive wild card for the Cardano price, potentially triggering a massive leap higher.
Growing expectations that 2025 will also see the launch of Cardano ETFs in the US is another narrative to consider that could also produce upside volatility.
All said, a bearish trend in the months ahead seems likely for the Cardano price, with a risk of short-lived upside volatility.
Savvy crypto investors may want to take advantage of lower prices to accumulate ADA, assuming it will remain a leading crypto in the long-run.
Its plans to become the go-to Bitcoin DeFi layer suggest its future is bright. However, layer-1 protocols like Ethereum, Solana and Sui that have so far garnered much greater adoption may be better long-run bets.
The post Cardano Price at a Major Crossroads – Here’s Where Its Heading in the Coming Months appeared first on Cryptonews.
