The price of Cardano crossed the $1 mark on Friday, after rising 31.4% in the first 3 days of 2025. Market reports suggest that the rally was fueled by a recent post by founder Charles Hoskinson hinting at new product offerings in 2025. Will the ADA price reversal of $1.50 resistance in the coming days?
Cardano Price Leads Crypto Market Recovery in 2025
After volatility near 2024, Cardano emerged as the best performing mega-cap crypto asset in the first week of 2025.
While Bitcoin (BTC) and Ethereum (ETH) are up 7% and 8% respectively since December 31st, ADA prices are up more than 31%.
Cardano share price (ADAUSDT)
Why is the price of Cardano increasing?
Cardano’s recent price surge can be attributed to a combination of blockchain advancements and broader market optimism ahead of the new year.
On Thursday, the network unveiled its CIP-113 proposal, which focuses on programmable assets, enhanced security features and smart accounts.
According to Matteo Coppola, Cardano senior engineer and CEO of FluidToken, this could potentially enable the launch of “real-world stablecoins, securities and assets” on the Cardano network.
Cardano founder Charles Hoskinson reflects on improvement proposals for 2025 | Source: X.com/IOHK_Charles January 2, 2025
Recent media updates indicate that the ongoing ADA meeting coincided with Cardano founder Charles Hoskinson’s recent post on X supporting the proposed CIP-113 network updates.
Within 72 hours of the announcement, the price of ADA had risen by more than 31.4% to reach $1.1 at press time on Friday.
Cardano TVL up $140M amid positive start to 2025
Despite recent market-leading gains of 31.4%, other vital indicators on the chain suggest that ADA prices could potentially advance further.
The DeFiLlam total value lock chart below tracks daily changes in the value of assets held within the Cardano blockchain network. By monitoring changes in TVL, strategic traders can infer the directional flow of organic capital during key market events.
Cardano (ADA) TVL | Source: DeFiLlama
As shown in the chart above, the price of Cardano increased from $423 million on December 30th to $569.4 million on Friday.
This reflects a 32% increase in the Cardano DeFi capital base, which is closely comparable to the 31.4% price increase.
When the rise in cryptocurrency price coincides with DeFi TVL inflows as seen this week, it gives a bullish outlook for the upcoming trading sessions.
First, it reaffirms the positive reaction to the network updates recently approved by Cardano’s founder.
Moreover, it also suggests that the current surge was supported by organic online demand rather than speculative trading.
With Cardano TVL rising at a rapid pace, ADA is likely to maintain relatively high support levels and avoid sharp corrections as it moves towards the $1.20 area in the coming trading sessions.
Cardano Price Forecast: We expect more gains if the $1.20 resistance falls
The price of Cardano (ADA) showed bullish momentum, closing with a noticeable gain of 13% over two days.
Rising trading volume suggests renewed investor confidence, matched by a rise in the accumulation/distribution line (ADL), reflecting positive accumulation trends.
Cardano Price Forecast | ADAUSDT
Current price action indicates that a break above the Keltner Channel upper limit at $1.1157 could open the way towards the $1.20 resistance level.
A decisive close above the $1.20 territory could trigger further buying pressure, potentially pushing ADA further towards the $1.50 mark.
On the downside, if the bullish momentum weakens, immediate support is at the middle Keltner level of $0.9467.
Further declines could see Cardano price test the lower Keltner limit near $0.7778.
