ADA Skyrockets 8% as Cardano Climbs Back to $1, What’s Next?

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As a seasoned crypto investor with battle-scarred fingers from the 2017 bull run and the subsequent bear market, I find myself cautiously optimistic about Cardano (ADA) at this juncture. The recent surge to reclaim the $1 mark is indeed promising, but my years of experience have taught me that the crypto market can be as unpredictable as a rollercoaster ride in Coney Island.

Cardano (ADA) is making a strong resurgence, jumping by 8% and regaining the $1 price point. This latest increase is part of a larger crypto market recovery that’s happening after a period of turbulence earlier in the week.

On Monday, cryptocurrencies experienced a significant decline due to a severe market correction. This downturn led to a 15% drop in the value of Cardano (ADA) over a 24-hour period. This steep fall triggered one of the biggest margin calls in recent years, resulting in the termination of approximately $1.5 billion worth of bullish bets placed on derivatives.

Currently, several cryptocurrencies are showing signs of recovery, just before the upcoming announcement of the U.S. inflation figures this afternoon.

On Wednesday, an important economic update is expected to show that the recent efforts to reduce inflation have stalled, yet it’s unlikely that this halt will be so significant as to prevent the Federal Reserve from lowering interest rates in the upcoming meeting.

Market observers are keeping a keen eye on whether ADA will continue its upward momentum and successfully surpass significant obstruction points.

What’s next for ADA price?

During Monday’s trading, ADA dropped significantly to reach an all-time low of $0.911, resulting in a three-consecutive day decrease that pushed its value beneath the $1 mark. However, starting on Tuesday, prices showed signs of improvement from a bottom of $0.93.

Currently, as I’m typing this, ADA has increased by 10% over the past 24 hours, reaching a peak of $1.09 during the day.

If ADA continues its progress at about $1, this could attract more buyers, potentially pushing its price towards resistance points around $1.20.

If Cardano (ADA) manages to breach the $1.25 – $1.33 resistance area, it could signal a resumption of the bullish trend. Subsequently, ADA might climb towards $1.64, where it is anticipated to present a significant barrier to further upward movement.

On the flip side, potential selling and future market drops might slow the progress we’re seeing. Maintaining the $1 price floor is essential for maintaining our positive trajectory. If we fall below this point, it may trigger a slide down to $0.87. Such a significant drop could delay the commencement of the next phase in our upward trend.

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2024-12-11 18:38