Cardano (ADA) recently experienced a significant price fluctuation, dropping over 21% in just one week before rebounding. The cryptocurrency hit a low of $0.911 but has since surged back to $1.07, reflecting an 8.57% increase in the last 24 hours.
This recovery has sparked optimism among analysts, with one long-time supporter predicting that ADA could reach $2 in the near term and potentially hit $3 by January 2025. The uptick in ADA's open interest in the derivatives market also indicates renewed investor interest.
However, not all analysts share this optimism. Some have identified critical support levels near $1.20 that could hinder ADA's short-term bullish momentum. A sustained break below this level could lead to further declines. Additionally, there is a bearish sentiment prevailing among ADA holders, with a majority currently facing unrealized losses. This situation could trigger additional selling pressure during minor price recoveries.
Cardano is also facing challenges related to declining network activity. The creation of new addresses has decreased by 44.90% over the past week, and active addresses have fallen by 38.66%. This reduction in network engagement raises concerns about Cardano's ability to maintain its user base and attract new investors.
The interplay between bullish predictions and bearish sentiments creates a complex landscape for Cardano. While some analysts remain hopeful about ADA's potential, others caution that significant hurdles must be overcome. The critical support levels and prevailing market sentiment suggest that ADA's path forward may be challenging. The cryptocurrency's future will likely depend on market dynamics, investor behavior, and broader economic factors.