TLDR
- Cardano (ADA) is up over 30% since the start of 2025, breaking through key technical resistance levels and trading at around $1.10
- The new Trump administration, led by crypto-friendly officials and advisers, is expected to create a more favorable regulatory environment for cryptocurrencies
- Cardano plans to integrate with Bitcoin DeFi by May 2025, while betting markets show a 33% chance of ADA ETFs being approved this year
- Technical analysis suggests that ADA could reach $7.80 if it follows a similar pattern to the 2020/2021 bull market, representing a potential 7x gain
- Despite a market cap of $50 billion, Cardano’s on-chain metrics show relatively low adoption with a Total Value Locked (TVL) of less than $1 billion.
The price of Cardano showed notable strength in early 2025, recording a 30% increase year-to-date. The cryptocurrency, trading at around $1.10, has broken through several key technical resistance levels, including its December downtrend and the 21- and 50-day moving averages.
The price action has established a new trading range between $1.056 and $1.118. shows stability after the initial increase. This consolidation phase will begin when Bitcoin crosses the $100,000 mark, creating positive sentiment across the cryptocurrency market.
Market dynamics were particularly influenced by the impending political change. The impending inauguration of the Trump administration, scheduled to take office in two weeks, has sparked optimism among crypto investors. The new government’s pro-cryptocurrency stance represents a clear departure from the previous regulatory approach.
David Sacks, who has been appointed as the government’s crypto advisor, has publicly expressed his strong support for cryptocurrency adoption. This appointment signals a possible change in direction in regulation, particularly with regard to the classification of digital assets such as Cardano.
The broader market context supports the bullish case for Cardano. Bitcoin entered the post-halving phase in April, historically a phase associated with strong price action. This cycle typically extends between 6 and 18 months after the halving, indicating continued momentum in the cryptocurrency market.
Institutional adoption continues to accelerate and discussions are emerging about the possibility of establishing a strategic Bitcoin reserve in the US. These developments could maintain upward pressure on Bitcoin prices in 2025 and potentially benefit the entire cryptocurrency ecosystem.
Technical indicators suggest that altcoin markets, including Cardano, may be entering a new phase. Bitcoin’s market dominance has shown signs of weakening and has fallen below a long-term uptrend. Similar patterns in 2021 preceded a period of significant gains for alternative cryptocurrencies.
Cardano’s technical development roadmap includes a major milestone scheduled for May 2025. The platform plans to integrate into Bitcoin’s DeFi ecosystem, potentially expanding its utility and user base. This technical upgrade could attract new users and capital to the Cardano network.
The regulatory landscape could also change in Cardano’s favor. The SEC’s new leadership may take a different stance on classifying ADA as a security, moving away from the previous administration’s position. This potential regulatory clarity could remove uncertainty for institutional investors considering Cardano investments.
Cardano co-founder Charles Hoskinson could secure a position as an advisor in the new government. Such an appointment could increase Cardano’s visibility and adoption in the United States and potentially impact its market performance.
Market participants are increasingly considering the possibility of launching ADA ETFs in 2025. Betting markets currently rate this probability at 33%, reflecting growing optimism around regulated investment products Cardano.
Technical analysis of Cardano’s bull market behavior so far suggests possible targets for this cycle. During the 2020/2021 bull market, ADA reached the 2.618 Fibonacci extension above its 2017 highs. A similar move in the current cycle could push the price to around $7.80, a sevenfold increase from current levels.
However, certain metrics advise caution. Despite its $50 billion market cap, Cardano’s on-chain activity remains relatively modest. According to DeFi Llama, the total value locked in smart contracts has not reached $1 billion, lagging behind competing platforms such as Ethereum and Solana in terms of transaction volume and decentralized application usage.
The recent price consolidation between $1.056 and $1.118 follows the strong upward move with trading volume remaining stable. Bitcoin’s continued strength above $100,000 provides support for the broader market, including Cardano’s price action.
