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Cardano price prediction ahead of CME ADA futures launch

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cardano price

Cardano price continued its strong downward trend, reaching its lowest level since February 2021, as the crypto market crash accelerated. 

Summary

  • Cardano price dropped to a crucial support level as the crypto market crash continued.
  • CME will launch its ADA futures on Monday next week.
  • ADA’s price action will depend on the performance of the broad crypto market.

Cardano (ADA) token was trading at $0.2650, down by 80% from its highest point in December 2024. It has also retreated by 91% from its all-time high of $3.

A potential catalyst for ADA’s price will be the upcoming CME Group futures listing on February 9 this year. This is a major listing that will make it available to institutional and retail traders.

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Historically, such important launches normally lead to higher prices. For example, tokens such as Solana (SOL) and Ripple (XRP) jumped after their futures launched. 

However, in Cardano’s case, there is a possibility that the rebound will not happen after the futures launch. First, the launch will occur during a crypto market crash. As such, the broader sentiment in the industry may outweigh the importance of the futures listing.

Second, Cardano may remain under pressure since the ADA futures launch has been priced in by market participants. Additionally, Cardano has lost favor with investors in the past few years because it has been left behind by similar chains like Solana, BNB Chain, and Ethereum. 

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Cardano has failed to attract major oracle networks like Chainlink. Its total value locked in the DeFi industry is less than $300 million, which is much lower than the billions in assets in the industry. Also, it has a small market share in the stablecoin industry, with just $30 million in assets.

Charles Hoskinson and the team are working to address these issues through a 70 million ADA fund launched last year. The fund’s goal is to attract more oracles, tier-1 stablecoins, and analytics tools. Also, Cardano is preparing for the Midnight mainnet launch either this month or in March.

Cardano price technical analysis 

cardano price
ADA price chart | Source: crypto.news

The weekly chart shows that the ADA token has been in a strong downtrend in the past few months. It retreated from a high of $1.3296 in December 2024 to a low of $0.2360. Its lowest level this week was notable as it has failed to move below it several times since December 2022.

ADA price has moved below the 50-week and 100-week Exponential Moving Averages, which have made a bearish crossover. The Relative Strength Index has moved into the oversold zone at 30.

Therefore, the most likely Cardano price prediction is neutral. On the positive side, it has always bounced back whenever it reached this support level. This means that it may rebound again in the coming weeks.

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On the other hand, losing this support will lead to more downside, potentially to the key level at $0.100.

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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