Cardano’s ADA recently faced an 11% decline, yet analysts, including Captain Faibik, foresee a potential rally, projecting a climb to $0.80 by January’s end. The increasing on-chain trading volume for ADA indicates growing interest, hinting at a possible upward trend in its value.
External factors, such as the potential approval of a US Bitcoin ETF and the impending Bitcoin halving, could positively impact ADA’s price, leading some analysts to predict a notable surge.
Could Cardano (ADA) be Gearing up for a Rally this Month
In the midst of today’s substantial cryptocurrency market correction, Cardano’s ADA took a notable hit, declining by 11% over the past 24 hours, as reported by CoinGecko.
Despite this downturn, various experts remain optimistic, with Captain Faibik, a Twitter user, recently sharing a chart illustrating a “bullish pennant formation” for ADA. This analysis suggests a potential price surge to $0.80 by the end of January.
Adding to the potential for an upward trajectory, ADA’s on-chain trading volume has been on the rise, fluctuating between $8.8 million and $22.6 million over the past two weeks, according to DefiLlama. Whether this correction is temporary or indicative of a more sustained decline, these factors contribute to the speculation of a forthcoming positive trend.
Additional Factors that Could Have a Positive Impact on ADA
Should a spot Bitcoin ETF receive approval in the United States, ADA’s price may ascend. Major financial players like BlackRock, Fidelity, Invesco, and others await SEC decisions on their applications, anticipated in the first quarter, and approval speculation is high this week.
This ETF could streamline Bitcoin investments, potentially attracting a new wave of investors and driving up BTC prices. Such a surge in Bitcoin value could positively impact altcoins like ADA.
The upcoming Bitcoin halving, set for this spring, plays a significant role. Occurring roughly every four years, the halving halves miners’ rewards, increasing BTC’s scarcity. This could trigger a price rally if demand remains steady.
Analysts, including Dan Gambardello, argue that ADA might also reap benefits from the halving, potentially experiencing a price spike to a record high of $11.
