Cardano (ADA) Price Predictions: Bulls Target $2, Bears See Challenges Ahead

Dan Gambardello, a long-time Cardano proponent, is optimistic regarding ADA's future. He expects the token to hit $2 in the near term

Cardano (ADA) price witnessed a substantial recovery on Monday morning, offering a glimmer of hope to investors who had witnessed the token's price plummet over 21% last week.

ADA price dropped to a low of $0.911 during the seven-day period. However, it managed to rebound from this level and was trading at $1.07 at the time of writing, according to CoinMarketCap data. This marked an increase of 8.57% over the last 24 hours and 5.07% over the week.

Several analysts offered varying predictions on ADA's future price direction, with some presenting bullish outlooks.

Dan Gambardello, a well-known proponent of Cardano, expressed optimism regarding ADA's future price trajectory. He anticipated the token to hit $2 in the near term, as reported by CNF.

Expanding on his prediction, Gambardello noted that ADA could potentially reach $3 by January 10, 2025, if historical patterns from late 2020 to early 2021 were to be used as a reference.

He reportedly presented January 24, 2025, as a possible date for ADA to hit $3, using a conservative estimate, as per the CNF report. This aligns with his usual tendency to overestimate the speed at which market movements occur.

Gambardello's prediction seems to be supported by recent developments, with the Cardano price having witnessed a strong recovery recently.

Moreover, the derivatives market also showed favorable signs for ADA. According to data from Coinglass, Cardano's open interest saw a slight increase of 4.03% to reach $837.89 million.

However, other analysts remained less positive about ADA's short-term recovery.

Ali Martinez highlighted some key challenges that could prevent ADA from regaining bullish momentum. In his analysis, he pointed to a critical support level around $1.20, where 93,000 wallet addresses collectively held 2.54 billion ADA. This level was crucial for maintaining price stability.

According to Martinez, a sustained break below the $1.20 support could lead to a further price decline, potentially pushing ADA below $1.

His analysis also indicated a bearish market sentiment, with 64.68% of ADA holders facing unrealized losses. Such a scenario could amplify selling pressure during minor price recoveries.

On the positive side, Martinez identified a demand zone between $0.98 and $0.92 as a safety net. Within this zone, 41,720 wallet addresses held 1.03 billion ADA, which might limit further losses.

Meanwhile, on-chain data reflected declining activity within the Cardano network. Metrics from IntoTheBlock showed that the creation of new addresses had dropped by 44.90% over the past week.

While active addresses had decreased by 38.66%, zero-balance addresses fell by 46.15% over the same period, indicating diminished network engagement. This decline in activity further highlighted the challenges faced by Cardano's price amid the crypto market's uncertainties.

Despite the ADA rebound and surge in open interest, long liquidations increased to $4.30 million in the last 24 hours. It could also put pressure on the Cardano price action in the short term.