Crypto Crash Hits Cardano Hard – Can ADA Hold $1 and Start 2025 Strong?

The latest crypto market crash has hit Cardano (ADA) hard, but the worst might already be over, and bulls will be hoping that the cryptocurrency is still headed for a positive start to 2025.

Cardano (ADA) cratered as low as $0.76 on Friday, taking its pullback from recent highs to more than 40% at the time.

The Fed triggered a major stock and crypto market sell-off when they issued more-hawkish-than-expected guidance for only two additional rate cuts in 2025 on Wednesday.

What just happened?
The Fed cut interest rates by 25 basis points which is exactly what 97% of market participants wanted.
But, the S&P 500 just posted its largest post-Fed drop since March 2020, erasing $1.8 TRILLION of market cap.
Why? Let us explain.
(a thread)

— The Kobeissi Letter (@KobeissiLetter) December 18, 2024

Since the Fed’s bearish meeting, ADA futures positions worth nearly $20 million have been liquidated, per coinglass.com.

However, Cardano’s strong recovery from intra-day lows in the $0.76 area to around $0.95, which has seen ADA also reclaim its 50DMA, suggests the worst might be over.

Crypto Crash Hits Cardano Hard – Can ADA Hold $1 and Start 2025 Strong?

ADA is currently on course to close out a bullish hammer candlestick for this session.

And with macro set to take a back seat into the year’s end, with no further major US economic data releases or Fed events, focus is likely to return to bullish “adoption” talking points.

And Cardano has a few highly bullish narratives running in its favor right now.

Here is why the price is likely to reclaim $1.0 and start 2025 on the front foot.

Cardano Is Likely to Retake $1 and Start 2025 Strong, Here’s Why

Trump’s election victory last month sparked a major rally in crypto, but Cardano was one of the strongest performers.

That’s because Cardano has been one of the most beaten down cryptocurrencies by the current SEC, who classified it as an unregistered security in 2023 in lawsuits versus Binance and Coinbase.

The Trump administration is set to be the most pro-crypto in history – the treasury secretary is pro-crypto, there is a new Crypto/AI czar and the incoming SEC chair is also a friend to the industry.

Moreover, Cardano’s co-founder Charles Hopkinson may also end up advising the incoming administration.

This is a game changer for Cardano, which has until now struggled to garner substantial adoption for its blockchain when compared to rivals like Ethereum and Solana.

Cardano proponents are urging the Cardano Foundation to match Ripple’s massive donation to Trump’s inauguration to ensure their spot as a key player in future policy discussions.

Cardano should absolutely be donating to Donald Trump’s inaugural fund
Match Ripple
Cardano needs to do everything possible to be a key player in all of the policy discussions about the future of finance
This could encourage even more dialogue & cooperation with policymakers https://t.co/bt6sZJgQ5m

— Dan Gambardello (@cryptorecruitr) December 20, 2024

Meanwhile, Cardano hopes to accelerate the adoption of its blockchain by transforming itself into the go to BTC DeFi chain by mid-2025.

BREAKING NEWS:
BITCOIN IS COMING TO CARDANO MAY 2025 – CHARLES
"We're going to get Bitcoin on cardano at most likely may 2025"
Are you not excited? pic.twitter.com/i0SxJdpMhp

— Mintern (@MinswapIntern) December 19, 2024

A lot of traders have lined up to short Cardano around $1, per a Tweet from Deezy.eth. That raises the risk of a short-squeeze that could see ADA quickly retake years highs in the $1.30 area should the current recovery accelerate.

Looking into 2025, assuming the incoming pro-crypto administration and Congressional session delivers on all the talk, the arrival of a new golden age for crypto could send ADA skyrocketing.

A retest of record highs above $3 is certainly a possibility.

Cardano Alternative to Consider

While Cardano could be setting up for 3x gains in 2025, investors looking to secure larger gains might instead want to consider getting involved in meme coin markets.

Well-known meme coins like Dogecoin, Pepe and dogwifhat could all offer between 5-10x upside potential.

Alternatively, newer and lesser-known meme coins, whilst riskier, could offer substantially greater upside potential.

One meme coin that the team at cryptonews.com is a big fan of is a fun new gamified cat token called Catslap (SLAP).

This highly promising meme coin has already been able to reach a market cap of over $14 million per DEXTools.

The meme coin is running a massive $1,000,000 giveaway to users who accumulate the most slap points.

With a new meme season likely to hit as markets recover into the year’s end, SLAP could be one of the best-performing memes.

The post Crypto Crash Hits Cardano Hard – Can ADA Hold $1 and Start 2025 Strong? appeared first on Cryptonews.

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