The price of Cardano has fallen for three consecutive days as the outlook for the cryptocurrency continues to deteriorate.

cardano (Ada) extended its downtrend, falling to a low of $0.90, the lowest since January 1 and 33% below the 2024 high.

Downward momentum pushed some whales out of their positions. according to Ali Martineza popular cryptocurrency analyst on X, whales sold over 70 million ADA tokens worth approximately $63 million.

However, several catalysts could push the price of ADA higher in the coming months. First, as we mentioned previously, Bitcoin price It has several tailwinds, including ETF purchases, lower exchange balances, and a bullish pennant pattern. BTC's rebound will likely translate into gains for popular altcoins like Cardano and Solana.

Moreover, Cardano is preparing major upgrades this year. The most notable will be the next Integration with BitcoinOSwhich will unlock more than $1.4 trillion in liquidity. The developers are also working on Project Midnight, an ecosystem-expanding project.

Cardano may also benefit from the incoming Donald Trump administration, which is expected to adopt a lighter regulatory approach towards cryptocurrencies. One potential impact could be the approval of the ADA Spot ETF, which would provide more institutional capital to Cardano.

Cardano price technicals point to further gains

The daily chart shows that Cardano price may see further rise in the coming weeks. The currency is gradually forming a bullish pennant pattern, which consists of a long vertical line followed by a triangle formation. This latest pullback appears to be part of a pennant formation. Cryptocurrencies and stocks often see a strong bullish breakout after this pattern is formed.

In addition, Cardano has developed a breakout and retest pattern, which is another bullish continuation signal. The chart above shows that ADA formed a cup and handle pattern, with the upside of the cup at $0.805. Like the pennant, the cup and handle are well-known continuation patterns.

A breakout and retest pattern occurs when the coin moves above the top side of the cup and then retests it, confirming an upward breakout.

These patterns point to further gains for Cardano, especially in the first quarter of the year. If this scenario materializes, ADA price could jump to $1,410, which corresponds to the 61.8% Fibonacci extension level, representing a potential increase of 60% from the current level.