Rare chart patterns and market momentum hint at a bullish breakout for Cardano this holiday season.
Cardano Faces Decline but Shows Signs of Recovery
Cardano (ADA), currently trading at $1.06, has fallen nearly 20% from its year-to-date high of $1.327 in November. The decline mirrors trends seen in other major cryptocurrencies, including Avalanche (AVAX) and Binance Coin (BNB).
DeFi Activity Slows, TVL Shrinks
The pullback coincides with a drop in Cardano’s DeFi ecosystem, where total value locked (TVL) fell from $700 million last month to $597 million, per DeFi Llama. Key protocols like Liqwid and Minswap have also experienced reduced activity.
Rare Chart Patterns Suggest Rebound
Despite the slowdown, Cardano’s daily chart reveals a bullish pennant pattern, coupled with a golden cross—the 50-day EMA crossing above the 200-day EMA. These indicators point to a potential breakout.
Santa Claus Rally Could Boost ADA
Seasonal trends like the “Santa Claus rally” may also contribute to ADA’s recovery. Analysts predict the coin could rise to $1.325, a 23% increase from current levels, if the bullish momentum holds. However, a dip below $1.00 would challenge this outlook.
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