Since dipping as low as $0.75 earlier in the session, the Cardano (ADA) price has staged a massive intra-day rebound, triggering a major technical buy signal.
The Cardano price was last around $0.93, over 20% up from its earlier lows and re-igniting hopes that the cryptocurrency could soon retest the highs it hit above $1.30 last December.
Broader risk appetite in financial markets took a substantial turn for the better on Tuesday, despite Trump’s imposition of tariffs on Mexico, Canada and China, which just came into force.
Positive rhetoric from Ukrainian President Zelenskyy regarding the possibility of signing a minerals deal with the USA that could soon end the Ukraine/Russia war could be bolstering sentiment.
Perhaps more important could be the market’s growing confidence that the Fed will deliver more rate cuts this year to protect against any incoming protracted US economic malaise.
Per the CME Fed Watch tool, the market’s base case now appears to be for three rate cuts this year, as opposed to bets for only one or even zero just weeks ago.
Whatever the reason for the turnaround, Cardano is looking very bullish right now. Its Sunday surge on Trump’s crypto reserve announcement saw it break above a medium-term downtrend.
And Tuesday’s rebound from intraday lows, when the Cardano price was retesting this former downtrend, is a strong technical signal that the bulls have regained control of this market.
Chart analysis now suggests a strong likelihood that the Cardano price’s next move will be back toward its late 2024 highs in the $1.30 area.
How High Can the Cardano Price Go in 2025?
Whilst Tuesday has in the end turned into a macro risk-on day, macro risks remain elevated with Trump still intent on pursuing trade wars, and a US economic slowdown still very much on the horizon as D.O.G.E austerity reduces fiscal stimulus.
This remains a very complicated macro backdrop for crypto traders to navigate, with a lot of two-way volatility likely.
That said, the outlook for the Cardano price remains tilted very much to the upside, and not just because of the aforementioned technical buy signal.
The Trump admin appears intent on including Cardano, alongside other “made in America” cryptos like Solana and XRP, in its crypto reserve.
This represents a major upside wild card for Cardano, as does the potential for the US Treasury to adopt Cardano as its decentralized and transparent payment ledger.
Couple this with the high likelihood that spot Cardano ETFs receive approval in 2025, and it’s obvious that 2025 could be a record year of adoption for the crypto.
Moreover, Cardano’s push to become the go-to Bitcoin DeFi side-chain could also be a major narrative.
All said, while conditions are expected to remain bumpy – there certainly isn’t enough liquidity in the market right now for a true alt-season – risks are strongly tilted towards the upside for the Cardano price this year, with a retest of 2021 highs above $3.0 very possible.
ADA is a strong candidate for one of the best cryptos to accumulate in the months ahead.
The post Cardano Price Triggers Major Buy Signal – Here’s Where ADA Is Headed Next appeared first on Cryptonews.
