Cardano (ADA) has positioned itself as the top performer in the broader crypto market recovery, far outpacing major players like Bitcoin (BTC) and Ethereum (ETH).
While BTC and ETH have posted modest gains of 6% and 7%, respectively, since the start of the year, ADA has soared by an impressive 32%, breaking past the $1 threshold and reigniting investor interest.
At press time, Cardano is trading at $1.13, reflecting a 5% increase over the past 24 hours and an impressive 32% surge over the week.
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This remarkable rally has drawn attention to ADA’s potential to maintain its momentum, with investors speculating on whether the cryptocurrency can break through critical resistance levels in the weeks ahead.
ChatGPT projection on Cardano (ADA) price
To gauge Cardano’s potential trajectory, Finbold turned to market data and sought insights from OpenAI’s advanced AI model, ChatGPT-4o.
According to the AI model, ADA is poised for continued growth in 2025, driven by a combination of technical upgrades and strong fundamentals.
In the near term, ChatGPT-4o projects that Cardano could test the $1.50 resistance level, provided its current momentum remains intact.
Looking further ahead, the AI estimates a steady upward trend, suggesting that ADA could climb between $2.50 to $3 by the end of the year.
Key drivers behind ADA’s price surge
One notable driver, as highlighted by the AI, is the introduction of CIP-113, a proposal that has significantly boosted investor confidence. The proposal aims to integrate programmable assets, enhanced security features, and smart accounts into the Cardano ecosystem.
This could potentially enable Cardano to support stablecoins, enhanced security features, and real-world asset tokenization, making a major step forward for the network.
DeFi activity strengthens the outlook
Cardano’s total value locked (TVL) has risen sharply, climbing 33% since the start of the year to $569.4 million, according to data from DeFiLlama.
This increase in DeFi activity, as highlighted by the AI model, suggests that the rally is being driven by organic demand within the Cardano ecosystem rather than speculative trading, further strengthening the bullish outlook for the token.
Derivatives data reinforces Cardano’s bullish sentiment
Derivative data adds another layer of positive sentiment. Long/short ratios on major platforms like Binance and OKX show a strong bias toward long positions, indicating that market participants are confident in ADA’s continued price growth.
Notably, short liquidations have outpaced long liquidations in recent sessions, creating a short squeeze that often drives prices higher. The AI model sees this as a sign of growing trader confidence and a shift toward bullish momentum for Cardano.
Surge in wallet activity
Recent transaction trends indicate a significant rise in wallet activity on the Cardano network, driven by a surge in new investors since December.
Data from the IntoTheBlock reveals steady growth in the total number of funded wallets showcasing a consistent influx of new participants.
This increase in activity appears to align with the countdown to Trump’s inauguration, reflecting renewed market engagement and heightened investor interest.
ChatGPT notes that this rise in transaction activity and wallet creation reflects increasing network adoption and deeper investor engagement, further bolstering confidence in Cardano’s long-term potential.
ADA technical indicators and market projections
Technical indicators add weight to the bullish outlook for Cardano, with projections pointing toward a potential breakout.
Analyst Ali Martinez has highlighted the formation of a bull pennant pattern, which could propel ADA to a target price of $3.
Additionally, projections suggest that Cardano could achieve a $100 billion market cap in 2025, potentially translating to a price range of around $2.85. This aligns with forecasts highlighted by AI, further strengthening the bullish outlook for the cryptocurrency.
This convergence of technical patterns, on-chain activity, and growing market sentiment paints a compelling picture of Cardano’s growth potential, positioning it as one of the most promising cryptocurrencies of 2025.
Featured image via Shutterstock
