Cardano (ADA) ‘bottomed’ and on verge of ‘grand bull market’ — Peter Brandt
2025-01-17
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Cardano (ADA), like XRP (XRP) and Solana (SOL), has experienced positive price momentum during the recent Trump rally, partly due to its parent company, Input Output (IOHK), being a US-headquartered organization. The altcoin is up 30% in 2025, and ADA is consolidating above $1 for the first time since April 2022.
With the altcoin currently attempting to hold above the $1.10 resistance level, one analyst said its market structure is potentially shaping up for a massive rally. 
Peter Brandt says Cardano is ready for a grand bull run
President-elect Donald Trump has been vocal about the upcoming administration preparing to establish a crypto-friendly Securities and Exchange Commission, transparent token guidelines, and better legal restrictions. 
Cointelegraph reported that the incoming president is rumored to be “receptive” to a strategic reserve with other US-based digital assets such as Solana, USDC, and XRP. The speculations have caused a snowball effect in the markets, with “altcoin season” chatter catching the markets’ attention again. 
In light of that, Peter Brandt, a veteran trader, mentioned that irrespective of an altseason, Cardano has “bottomed,” according to its weekly chart. 
The trader explained that the crypto asset had formed a double-bottom base, which lasted more than one year before breaking above its recent local high of $0.81. Consequently, the local high at $0.81 has been turned into immediate support, with the price witnessing a “retest congestion.” The trader said, 
Similarly, Altcoin Sherpa, a crypto analyst, shared a similar perspective with respect to ADA, touting that its chart “looks pretty strong.” The analyst expected Cardano to continue on its bullish ascent as long as other retail-friendly assets continued to move higher. 
Related: Trump reportedly ‘receptive’ to strategic reserve with US-based cryptos
ADA aims to turn the $1.10 resistance to support
Adding further confirmation to Brandt’s analysis, ADA has rebounded from the 0.5-0.618 Fibonacci retracement levels, considered the golden zone. During an uptrend, traders utilize the 0.5-0.618 range key area, where the price is expected to reverse after a brief correction from its previous local high. 
As observed in the chart, ADA’s recent correction stretched to $0.76 after the altcoin reached a new high of $1.32 on Dec. 3, 2024. Since then, the altcoin has retained a position above $1 and formed another key reversal signal with a double bottom pattern.
Compared to XRP and SOL (SOL), ADA is still 64.7% below its 2021 all-time high of $3.09. Therefore, traders are expected to take note of ADA’s favorable risk-to-reward (R/R) ratio if the altcoin can retest its ATH in 2025.
Related: 60% of crypto investors are young, educated, and invest under $10K — Survey
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.