Cardano price has moved sideways in the past few days as the recent crash stalled. The ADA token was trading at $0.2600, a crucial support level, where it has resisted moving below several times since December 2022. It has plunged by 80% from its highest point last year. This article provides the ADA price prediction ahead of the Midnight mainnet launch.
Cardano Price Prediction: Technical Analysis
The weekly timeframe chart shows that the ADA price has slumped in the past few months. It dropped from a high of $1.3248 in December 2024 to the current $0.2600.
The coin has slipped below the 100-week Exponential Moving Average (EMA). It is also along the lower side of the Bollinger Bands indicator. At the same time, the Relative Strength Index (RSI) and the MACD have continued falling. The RSI has moved to the oversold level.
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Cardano token remains below the Supertrend indicator, a sign that bears have prevailed. Therefore, the most likely ADA price prediction is bearish, with the next key target the $0.200 support level. A drop below that level will signal further downside toward the psychological $0.1500 level.
ADA price chart | Source: TradingView
Midnight Mainnet Launch and Pentad Proposal
The next main catalyst for the Cardano price is the upcoming Midnight mainnet launch later this month.
Midnight is a sidechain based on zero-knowledge proof technology. Its NIGHT token was launched in December last year and has accumulated a market capitalization of over $986 million.
Data shows that Midnight’s testnet is doing well during its testnet, with the number of slots rising to over 295 million and transactions being in the thousands.
Cardano hopes Midnight will be the catalyst for more activity on its network. For one, its total value locked (TVL) in decentralized finance has dropped to just $137 million, well below that of other newly launched networks like Monad and Plasma.
Midnight has already reached deals with top companies such as Google, MoneyGram, Telegram, and Vodafone, which will serve as its validators. Still, we believe that the Midnight mainnet launch will have a minor impact on Cardano’s price.
The other catalyst for the Cardano price is the ongoing implementation of the Pentad proposal, which aims to address key issues facing the network. It has already introduced Pyth Network as an oracle in the network. Also, it incorporated Dune Network to provide better analytics features. And most recently, it added USDCx as a stablecoin in the network.
While these actions are all food and positive, it is unclear whether they will lead to higher activity in the network. That’s because it will be highly difficult for Cardano to attract new developers to its platform. Instead, it seems like top chains like Ethereum and Solana have gained too much market share.
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