Cardano price remained under intense selling pressure, reaching its lowest level since November 4 last year. ADA token has dropped by nearly 70% from its highest point this year. 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, which will come out on December 15. Polymarket data shows that odds of a Fed will cut 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, which will happen on December 8.
Midnight is a sidechain, whose main feature is the zero-knowledge (ZK) capabilities that will enhance privacy in applications. The network will compete with the likes of Linea, Scroll, and ZkSync.
READ MORE: Top Cryptocurrencies to Watch: Ethereum, Jito, Pi Network
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 push 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 like IOTA Rebased, Scroll, Linea, and Keeta have struggled to gain developers.
Cardano price will also react to the latest vote on the budget proposal, which sees to use 70 million ADA tokens to address key issues in the network.
The developers hope that these funds will be used to boost its network in areas like 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, 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, where it aligns with the ascending trendline that connects 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
