As Cardano (ADA) attempts to maintain its price above the $1 support, OpenAI’s ChatGPT-4o has offered several scenarios for the decentralized finance (DeFi) asset on the last day of 2024.
Notably, ADA is among the notable beneficiaries of the current cryptocurrency market rally, having broken out from a prolonged consolidation below $1.
This surge was partly inspired by the post-election optimism following Donald Trump’s re-election. Trump is anticipated to spearhead the rollout of crypto-friendly regulations.
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ChatGPT predicts ADA’s price for December 31
Looking ahead, ChatGPT noted that heading into the final day of 2024, the value of ADA will likely be influenced by market sentiment, technological developments, investor behavior, and broader economic trends.
To this end, the AI tool pointed out that ADA will likely trade between $1.25 and $1.40 in a bullish scenario on December 31. The high target reflects a growth of about 26% from the current valuation.
ChatGPT predicted that ADA would trade around $1.10 to $1.15 in a neutral situation, where the current market conditions remain stable. However, if the cryptocurrency sector experiences bearish sentiments, the AI tool foresees Cardano dropping below $1 by December 31.
ADA’s key fundamentals
Several fundamental and technical indicators support a possible short-term price increase for ADA, with whale accumulation standing out. According to data from prominent cryptocurrency on-chain analyst Ali Martinez, on December 12, whales accumulated over 80 million ADA tokens within 48 hours.
The data indicates that wallets holding between 100 million and 1 billion ADA are behind this recent uptick in buying. Whale movements have historically signaled pivotal moments, often preceding upward price momentum or strategic accumulation phases.
At the same time, according to crypto on-chain analytics platform IntoTheBlock, as of December 14, a significant share of ADA holders are in profit, a factor likely to influence selling activity.
Indeed, 67% of holders are in profit, with 9% breaking even and 24% at a loss. With a significant number of investors in profit, ADA is likely to have strong support, as investors are less likely to sell, supporting possible continued momentum. However, profit-taking could slow momentum if the price stalls.
Meanwhile, the ADA community will likely be banking on Cardano network developments for a possible boost. For instance, the community is anticipating the full impact of Cardano’s ‘Chang’ upgrade, which shifts governance to ADA holders through voting and elected representatives.
The upgrade introduced a decentralized structure, transferring upgrade authority from founding entities to user-led groups. This move will likely enhance ADA’s utility and align with its decentralization goals.
ADA price analysis
ADA was trading at $1.10 by press time, gaining over 1.6% in the last 24 hours. Over the past month, the asset has rallied 94%.
Regarding the next price movement, a cryptocurrency trading analyst with the pseudonym CryptooELITES, in an X post on December 12, observed that ADA has broken out of a multi-year downtrend, signaling strong bullish momentum.
The cryptocurrency’s technical setup shows that ADA has formed a bullish cup-and-handle pattern, which indicates a continuation of the upward trend.
In this case, ADA’s move above the 0.618 Fibonacci retracement level at $1.73 points to growing investor confidence.
Further targets include $2.50 and $3.00, representing significant psychological and technical milestones, with $6.00 aligning with the 1.272 Fibonacci extension—a key indicator for measuring projected price movement beyond previous highs.
Should this momentum persist, the analyst believes a bull market end goal of $12 remains a realistic target. For now, attention is focused on how ADA will interact with the $1 support level, as a drop below this point could signal trouble for the asset.
Featured image via Shutterstock
