Cardano Price Eyes $1.20 as Trump’s Inauguration Fuels Market Optimism

NAIROBI (CoinChapter.com) — Cardano (ADA) slipped below the $1.00 support level on Monday, reflecting profit-taking by short-term traders. The cryptocurrency traded at $0.9726, retreating from its weekly high of $1.10 after opening the day at $1.05. While Bitcoin (BTC) soared over $100,000 amid broader market volatility, ADA faced consolidation pressures.

Cardano (ADA) Drops Below $1 as Traders Take Profits

Cardano’s price dropped to $0.9726, falling below the critical $1 threshold on Monday after opening at $1.05. The cryptocurrency consolidated in a narrow range of $1.05–$1.10 following a 30% rally earlier in the week.

Short-term traders appear to be locking in profits, which has dampened the momentum for a potential breakout. Despite the price decline, the Cardano ecosystem has witnessed an influx of new users, suggesting growing investor interest in the blockchain’s developments.

Over the past 30 days, the number of funded wallets on the Cardano blockchain increased by 10,000, reaching 4.38 million. This trend began with the 30-day countdown to Trump’s inauguration, which has generated optimism for U.S.-based crypto projects due to promises of zero crypto taxes and a friendlier regulatory stance.

Investors Anticipate $1.20 Breakout

Cardano’s three-day consolidation at $1.07 could signal preparation for a breakout. On-chain indicators, such as the Bull-Bear Power turning positive and the Parabolic SAR supporting upward momentum, suggest buyer dominance. If ADA breaches the $1.20 resistance, it could pave the way for further gains.

ADA/USD 1-day price chart. Source: TradingView

The Donchian Channels identify $1.20 as a critical resistance level. A successful breakout could attract additional buying pressure, while failure to clear this level risks exposing ADA to downside pressures. Immediate support lies at $1.00, with further declines potentially targeting $0.92.

Trump’s Policies Could Boost U.S.-Based Cryptos

Trump’s proposed tax reforms for cryptocurrencies have generated excitement around projects with strong U.S. roots, including Cardano. The policy shift has already drawn new investors to ADA, as shown by the increase in funded wallets since December 20.

This steady growth in adoption reflects rising confidence among retail investors, often a precursor to bullish price action. Additionally, increased on-chain activity from newly funded wallets could enhance Cardano’s network value.

Cardano’s price remains poised for a breakout above $1.20, supported by bullish market sentiment and growing adoption. However, failure to breach this resistance could expose the token to further declines. Trump’s policies and the influx of new investors will likely remain key drivers of ADA’s performance in the weeks ahead.

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