Cardano price remained under intense selling pressure, reaching its lowest level since November 4 last year. The ADA token has dropped by nearly 70% from its year-to-date high. So, will the important catalysts highlighted in this article boost its performance?
Cardano Price Has 4 Potential Catalysts in December
ADA price has come under pressure in the past few months, mirroring the performance of other tokens like Bitcoin and Ethereum.
Cardano has four major catalysts this month. First, broadly, the token may benefit from the upcoming interest rate decision, scheduled for December 15. Polymarket data shows that the odds of the Fed cutting interest rates by 0.25% in this meeting. A rate cut, followed by a dovish statement, will likely push risky assets higher over time.
Second, the Cardano price will react to the upcoming Midnight launch on December 8.
Midnight is a sidechain that features zero-knowledge (ZK) capabilities, enhancing privacy in applications. The network aims to compete with platforms like Linea, Scroll, and ZkSync.
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Most importantly, the Midnight launch will also coincide with the NIGHT token airdrop, which will see many Cardano holders receive their extra tokens.
The risk, however, is where participants sell their tokens, which may put pressure on Cardano. Also, there is a risk that Midnight will not be successful as Charles Hoskinson has predicted. Some of the recently launched networks, such as IOTA Rebased, Scroll, Linea, and Keeta, have struggled to attract developers.
Cardano’s price will also react to the latest vote on the budget proposal, which seeks to allocate 70 million ADA tokens to address key network issues.
The developers hope these funds will be used to expand its network in areas such as decentralized finance (DeFi), real-world asset (RWA) tokenization, and decentralized public infrastructure (DePIN).
For example, the developers hope that the funding will attract tier-1 stablecoins to the network, as well as institutional custody and wallets, on-chain analytics, cross-chain bridges, and pricing oracles.
ADA Price Technical Analysis
The weekly chart shows that the ADA price has crashed in the past few months, moving from a high of $1.3210 in December last year to $0.40, its lowest level since November last year.
Cardano has dropped to a key level that aligns with the ascending trendline connecting the lowest swings since October last year, August, and November this year.
The token has moved below the 50-week and 100-week Exponential Moving Averages (EMA). It has also dropped below the Ichimoku cloud and the Supertrend indicators. Also, the coin has moved to the ultimate support level of the Murrey Math Lines tool.
Therefore, the coin may have a relief rally in December. Such a move may push it to the Major S&R Pivot Point at $0.7812. However, a drop below the ascending trendline will confirm the bearish breakdown and potentially reach a low of $0.20.
