TL;DR
- Cardano’s ADA experienced an 11% drop recently, but analysts like Captain Faibik see potential for a rally, predicting a rise towards $0.80 by the end of January.
- ADA’s on-chain trading volume has been on the rise, suggesting increased interest that could lead to a potential uptrend in its value.
- External factors, including the possibility of a US Bitcoin ETF approval and the upcoming Bitcoin halving, might positively influence ADA’s price, with some analysts forecasting a significant rise.
Is Cardano (ADA) Poised for a Rally This Month?
The cryptocurrency market experienced a severe correction today (January 3), with numerous assets plunging by double digits. One of the most affected ones was Cardano’s ADA, which is down 11% in the past 24 hours (per CoinGecko’s data).
Whether or not this is a temporary correction or a more lasting downturn, there are multiple optimistic forecasts from many experts. The X (Twitter) user Captain Faibik recently presented a chart in which ADA has formed a “bullish pennant formation.” As such, the analyst envisioned a price appreciation toward $0.80 before the end of January.
Another factor hinting at a possible uptrend in the near future is ADA’s surging on-chain trading volume. According to DefiLlama, the figure has been hovering between $8.8 million and $22.6 million in the past two weeks.
Increased trading volume could signify heightened interest and confidence in the crypto asset, which can attract more investors and drive the price up.
Other Elements That Might Positively Affect ADA
ADA’s price could also head north should a spot Bitcoin ETF see the light of day in the United States. Recall that finance giants such as BlackRock, Fidelity, Invesco, and others have filed applications with the SEC. The agency is supposed to weigh in during the first quarter of the year, with many experts believing an approval could come as early as this week.
The product will eliminate some barriers associated with investing in Bitcoin, such as self-custody, and possibly trigger a wave of fresh investors. This could propel a price increase for BTC, which in turn might positively reflect on the altcoins, including ADA.
The upcoming Bitcoin halving should also be mentioned. The event, scheduled for this spring, occurs approximately every four years and reduces the miners’ rewards in half. It increases BTC’s scarcity, which could lead to a price rally (if demand remains constant).
Analysts like Dan Gambardello have argued that ADA might also benefit from the halving and experience a price spike to an all-time high of $11. Those curious to explore additional forecasts from experts can take a look at our dedicated video below:
The post Can the Cardano (ADA) Price Reach $0.80 in January? This Analyst Thinks so appeared first on CryptoPotato.
