Cardano Price Prediction: ADA Targets $2 as Paul Atkins Takes Over the SEC

Cardano price has recovered modestly after crashing to $0.7637 in December. It has jumped by 45% and was trading at $1.1040 on Tuesday morning.

Cardano (ADA) price crashed to a low of $0.7637 in December, a sharp decline from its all-time high of $3.09. It has since recovered modestly, and on Tuesday morning, the coin was trading at $1.1040. But will the ADA coin continue rising in the coming days and possibly hit $2?

Several catalysts could push Cardano price higher in the near term.

First, as we highlighted in our recent ADA price forecast, the coin is notably undervalued based on the market value to realized value (MVRV) Z score. This score, which still stands at 2.5, indicates that the token is still highly undervalued.

There are also increasing odds that the Securities and Exchange Commission (SEC) will approve a spot ADA ETF in 2025. A new Polymarket poll puts the odds at 42%, up from a low of just 10% last week.

Most analysts believe that Paul Atkins will be more flexible as the SEC chair than Gary Gensler, who focused on lawsuits. During his tenure, he sued companies like Coinbase, Binance, Immutable, Kraken, and Uniswap.

A spot Cardano ETF would be successful considering that the coin is among the largest cryptocurrencies in the industry, with a market cap of over $34 billion.

Like other cryptocurrencies, Cardano will also likely benefit from the ongoing January Effect, where assets rise in January after December’s tax loss harvesting. According to historical data, the first quarter is usually the second-most profitable period for cryptocurrencies after Q4.

Other catalysts for Cardano include the network’s即将到来 integration of BitcoinOS, which will enable it to handle Bitcoin transactions, and the upcoming launch of Midnight, a zero-knowledge scaling solution that could boost its adoption.

ADA price analysis

ADA price bottomed at $0.7623 in the recent crash. It has since recovered and moved above the key psychological point of $1, a positive sign for the coin. Cardano has also moved above the 50-day and 100-day Exponential Moving Averages (EMA).

The coin is also forming a tiny bullish flag chart pattern, which is a popular continuation signal. As a result, we expect Cardano price to continue rising, with an initial target at $1.30, which marks the highest point last year.

If Cardano continues rising, the next point to watch will be $1.5, followed by $2. This rally could unfold in the first quarter as Paul Atkins stamps his authority at the SEC. On the flip side, a drop below the support at $0.9 would invalidate the bullish view.