- Cardano surged 6%, briefly testing $1 as bullish market sentiment returned.
- The Fed’s rate pause and ETF speculation are fueling ADA’s rally toward potential new highs.
- A sustained move above $1 could set the stage for ADA to retest $1.20, while support at $0.88 remains crucial.
Cardano (ADA) climbed by 6% on Thursday, briefly touching the key psychological level of $1 as bullish sentiment swept across the crypto market. The rally came alongside broader market gains, driven by improving macroeconomic conditions and growing optimism around regulatory developments.
Bitcoin and Ethereum both posted moderate gains, rising above $105,000 and $3,250, respectively. Altcoins like Stellar (XLM), Chainlink (LINK), and SUI followed suit, with Cardano riding the uptrend after a slow, discouraging start to the week.
On Binance, ADA prices reached as high as $0.96—representing a 12% jump in just 24 hours. This recovery snapped a string of four consecutive losing days and, if it closes above $0.90, could mark two green daily candles in a row for the first time since January 17.
The strong reversal suggests Cardano may have found a local bottom, with positive market sentiment supporting the case for a push above $1. If ADA can hold these levels, a retest of the $1.20 resistance may soon be in play.
Fed Policy and ETF Speculation Fuel Momentum
The U.S. Federal Reserve’s latest announcement provided the spark that reignited crypto market momentum. On Wednesday, the Fed decided to keep interest rates steady, signaling a potential shift toward looser monetary policy in the coming months.
Lower rates are typically good for riskier assets like cryptocurrencies, as they promote greater liquidity in financial markets. The Fed’s pause helped ease concerns about tighter conditions, encouraging investors to rotate capital back into high-growth sectors.
Following the announcement, buying volume surged for Cardano, propelling its price toward $1. Meanwhile, speculation around a possible Litecoin ETF is also driving optimism. Institutional interest could ramp up if such ETFs, including several already filed for ADA, gain approval.
As regulatory shifts and macroeconomic tailwinds gather steam, Thursday’s recovery positions ADA to benefit from these broader market forces.
ADA Price Forecast: Retesting $1.20?
Cardano’s price action shows early signs of a bullish reversal, with technical indicators pointing toward a potential breakout above $1. The daily chart reveals a strong bullish engulfing candle, signaling renewed buying interest after a period of consolidation.
ADA has bounced off the lower Bollinger Band, indicating a likely move back toward the midline near $1. The upper band at $1.11 aligns with the next resistance zone, making it a key short-term target for bulls.
Momentum indicators like the MACD histogram are printing higher lows, suggesting weakening bearish momentum. Meanwhile, the signal line is flattening, hinting at a potential bullish crossover. Additionally, ADA is trading near the VWAP (Volume-Weighted Average Price), indicating a shift in control as buyers regain dominance.
A sustained close above $1 could open the door for a rally toward $1.20, the previous local high. On the downside, if ADA fails to maintain this momentum, it may retest support at $0.88, where renewed buyer interest is expected.
