Cardano (ADA) is trading dangerously close to a low resistance level, however, market analysts still see upside potential for the cryptocurrency. ADA price is down 8% in the past week, while the overall crypto market is experiencing a period of renewal. However, experts don’t expect this slump to last long, indicating a potential 140% upside is possible.
A big reason for the drop in price for Cardano was the surprising whale activity. Indeed, large-scale cardano holders had sold 180 million ADA tokens last week, according to data shared on X (formerly Twitter) by crypto analyst Ali Martinez. However, that may not be enough to slow down a monumental year on the horizon for the asset. Indeed, after losing its dollar crown, the token is expected to regain that lost valuation soon.
One key indicator analysts are suggesting could rejuvenate ADA’s price is its upcoming Plomin hard fork. The new upgrade brings full decentralized governance, giving ADA holders voting power over key blockchain decisions. The Cardano Foundation calls the upgrade “a milestone in blockchain governance.” “The Plomin hard fork takes effect, marking the transition to full decentralized governance. $Ada holders gain real voting power—on parameter changes, treasury withdrawals, hard forks, and the blockchain’s future,” the post adds.
In addition, the upgrade allows token holders to delegate voting power to delegated representatives who vote on governance actions, including protocol parameter changes, treasury withdrawals, and hard fork initiations. Usually, hard forks require staking pool operators to upgrade their nodes and approve the upgrade with a 51% majority. As of January 22, 78% of Cardano’s network nodes had upgraded to the new version, according to a January 23 report from Emurgo.
Also Read: Cardano ADA: Is a $1 Breakout Coming After Consolidation?
Cardano ADA to See Rally Thanks to Hard Fork Upgrade, Whale Investments
Furthermore, while short-term challenges persist, ADA’s long-term outlook remains bright, thanks to key chart indicators. A quick look at Cardano’s daily price chart reveals a clear trend. Each dip to the $0.60 support is met with a solid rebound, suggesting steady accumulation. Additionally, whales are actively supporting ADA by buying in on the dip, which could mean another rebound after this consolidation period. According to several price predictions, this rebound could bring a strong surge above $1 for Cardano’s native cryptocurrency.
The upcoming Cardano hard fork upgrade may assist ADA in regaining a $1 valuation. In the past, previous upgrades gave Cardano’s cryptocurrency a slight boost in value, with investors showing confidence in the updates’ promises. Currently trading under $0.95, ADA hopes to pick back up on the 95% yearly gains it has seen since 2024. According to data from CoinCodex, ADA will carry its current trend into February. The firm projects the altcoin will be trading slightly higher than its current price level. Cardano will begin February at a price range of $0.980228. This further marks a 1.92% rise from its existing price. While this may not seem like a lot, the asset seems to be finding its way back to $1 and beyond.