Cardano’s price has remained sideways this month, but a rare chart pattern indicates a potential comeback in the coming weeks.

Cardano (ADA), the popular layer-1 cryptocurrency, is trading at $1.06, down nearly 20% from its highest level this year.

The pullback followed a rally that pushed the coin to a multi-year high of $1.327 in November during the crypto bull run. This decline mirrors the performance of other cryptocurrencies, like Avalanche (AVAX) and Binance Coin (BNB), which have also retreated from their year-to-date highs.

Cardano’s drop coincided with a decline in the total value locked (TVL) within its decentralized finance ecosystem. According to DeFi Llama, Cardano protocols now hold over $597 million in total assets, down from last month’s high of nearly $700 million. The largest protocols in its ecosystem include Liqwid, Minswap, Indigo, and Splash Protocol.

Whale activity for Cardano has also slowed, and the number of active addresses over the past 24 hours is below 43,000. Meanwhile, open interest in the futures market has continued to decline.

However, several catalysts may push Cardano’s price higher in the short term. For instance, rising crypto demand—highlighted by Bitcoin’s surge past $106,000—could support ADA. Additionally, Cardano may benefit from a potential spot ADA ETF listing as early as 2025.

In the near term, the coin could also experience a boost from the “Santa Claus rally,” a phenomenon where asset prices tend to rise ahead of Christmas Day.

Cardano price has formed a rare chart pattern

The daily chart shows that the ADA price staged a strong comeback in November after Donald Trump won the election. It has since slowly formed a bullish pennant chart pattern, consisting of a long vertical line and a symmetrical triangle. This pattern is nearing its confluence point, suggesting that a bullish breakout could occur.

Cardano has also formed a golden cross pattern, where the 50-day and 200-day Exponential Moving Averages have made a bullish crossover.

As a result, Cardano is likely to see a strong bullish breakout in the coming days. If this happens, the coin could rise to $1.325, its highest point this year, representing a 23% increase from its current level. A drop below the support at $1.00, however, would invalidate the bullish outlook.

Crypto payments provider Alchemy Pay has announced plans to launch its own layer-1 blockchain, which the company says will target large-scale business applications.

Alchemy Pay (ACH) notes that the layer-1 blockchain will be dubbed Alchemy Chain and built on the Solana (SOL) Virtual Machine architecture. Per an announcement on Dec. 11, the new L1 will offer a payment system allowing users to transact with fiat and crypto.

The platform will also offer a user-friendly ecosystem bridging on-chain and off-chain processes, chain abstraction, a stablecoin revenue mechanism, and yield generation. Additionally, the blockchain network will integrate a layer-2 solution, as outlined in the company’s blog post.

Alchemy Chain is set to launch with a meme launchpad and a meme Telegram bot, aiming to tap into the growing popularity of meme-based projects.

The company revealed initial plans for the L1 blockchain in late October 2024, news that saw the price of ACH jump double-digits.

Latest details on the previously disclosed objective has also seen ACH price record a significant spike, with the token up 14%. However, as well as the project related news, its price was trading higher as Bitcoin (BTC) spiked to $100k amid fresh recovery by bulls.

In recent months, several platforms have looked to launch own layer-1 and layer-2 chains.

Coinbase unveiled the mainnet of Base in August 2023, while Chiliz revealed its own blockchain in February. World, formerly Worldcoin, partnered with Alchemy Pay to launch World Chain. Recently, crypto exchange Kraken disclosed plans to debut its L1 blockchain in 2025.

The AMP token experienced a robust rally, reaching $0.0144, its highest level since March 11.

Ampere (AMP) has surged by about 300% from its yearly low, pushing its market capitalization to over $910 million.

The surge coincides with a broader shift into older cryptocurrencies that outperformed in 2021, following notable surges in names like Stellar Lumens (XLM) and Ripple (XRP).

AMP’s utility in the payment industry, particularly for its fast transaction speeds and low costs, has supported its price growth. Recently, AMP technology was integrated into Flexa, a growing payment network for e-commerce.

AMP’s price also rose as crypto analysts expressed bullish sentiments about the coin. In a statement, CJ Bennet, a popular crypto analyst, noted that the coin was poised for more gains, potentially reaching a record high.

Amp’s all-time high was $0.037, meaning that it still needs to gain 235% from its current level to reach that milestone.

The coin is also gaining as investors celebrate the arrival of altcoin season. Data from CoinMarketCap shows the altcoin season index has climbed to over 80, while the fear and greed index has risen to 88. Most altcoins tend to perform well during periods of high market greed.

Meanwhile, there are signs that AMP whales are accumulating the coin. According to Etherscan, one whale moved tokens worth over $2 million from Coinbase, which is seen as a bullish signal.

AMP price analysis

The daily chart shows that the AMP token price experienced a strong bullish breakout, reaching a high of $0.01450. It surpassed the crucial resistance level at $0.0091, its highest point on April 29.

The coin has formed a golden cross pattern as the 200-day and 50-day moving averages crossed each other.

The MACD and the Relative Strength Index also indicate upward momentum. Therefore, AMP needs to close above this week’s high of $0.01450 to confirm the bullish trend. A close below this high could validate a shooting star pattern, a common bearish indicator. If that occurs, the price may drop and retest the support at $0.0091.