TLDR
- Cardano (ADA) surged 18.8% in four days, rebounding from $0.51 to about $0.606
- Trump’s 90-day tariff pause on 75+ countries (excluding China) helped boost crypto market sentiment
- Technical signals show bullish momentum with ADA breaking out of a falling wedge pattern
- Major resistance remains at $0.70-$1.00 range where multiple EMAs are clustered
- Long-term outlook appears positive despite short-term macro economic concerns
Cardano’s native token ADA has experienced a remarkable price recovery, jumping over 20% from its weekly lows. The cryptocurrency, which had been declining since December 2024, found support around the $0.51 level before rebounding to approximately $0.62 as of Friday’s early trading.
The upward movement coincides with US President Donald Trump’s decision to delay tariffs against many nations by 90 days, excluding China. This policy shift provided relief to global markets and helped stabilize Bitcoin around $75,000 while giving altcoins like Cardano a boost.
ADA’s bounce appears technically significant. The token had been trading within a falling channel since December 2024, with the recent price action aligning perfectly with the pattern’s support zone. This suggests the movement may have legitimate technical underpinnings rather than being a random fluctuation.
Technical Signals Point to Continued Momentum
Analyst Trader Edge suggests that price is approaching a key resistance level at $0.65. If bulls can flip this level into support, we could see a push up towards the next resistance level at $0.762.
Cardano $ADA is approaching a major level of resistance at $0.65
Failure to break above, could see a push down to the key support level at $0.46 pic.twitter.com/Voo1BZz6V5
— Trader Edge (@Pro_Trader_Edge) April 11, 2025
Short-term chart analysis reveals several bullish indicators for Cardano. The Relative Strength Index (RSI) is showing a positive divergence – while price made a lower low, the RSI printed a higher low. This pattern typically signals increasing buying momentum and strengthening interest from purchasers.
The cryptocurrency has also broken out of a falling wedge pattern, which often precedes upward price movements. This breakout, combined with the RSI divergence, provides technical traders with reasons for optimism about ADA’s near-term prospects.
However, challenges remain ahead. Cardano is currently facing strong resistance at the $0.70 level, where the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are clustered together. Breaking through this zone will be crucial for converting the recent bounce into a sustained rally.
The last time ADA rebounded from similar support levels, it achieved a 53% increase, reaching just over $1. If history repeats, traders could see a potential 70% rally from current levels – but only if buyers can overcome the significant resistance ahead.
Macro Factors Affecting Crypto Markets
The broader economic environment continues to influence cryptocurrency price action. While Trump’s tariff delay has temporarily eased trade tensions, ongoing economic measures between the US and China remain a concern for global markets.
Positive US Consumer Price Index data recently helped calm inflation worries, contributing to the improved market sentiment that has benefited Cardano and other cryptocurrencies.
BREAKING: Core CPI Inflation in the US just fell below 3.0% for the first time since March 2021 🇺🇸 pic.twitter.com/cQbrxGy1cp
— The Kobeissi Letter (@KobeissiLetter) April 10, 2025
Yet uncertainty persists. The Trump administration’s economic policies have increased market volatility despite their popularity. Trade war concerns have negatively impacted business sentiment and investment while raising inflation fears.
The DOGE austerity measures are reducing the deficit and fiscal stimulus in the economy, potentially affecting the overall job market. Some analysts worry the US economy could slip into recession later this year or may already be experiencing one, which would likely put pressure on risk assets like cryptocurrencies.
Long-Term Outlook Remains Promising
Despite short-term concerns, Cardano’s future appears bright. The Trump administration has been taking steps favorable to cryptocurrency growth, which could benefit ADA in the long run.
Just Thursday, Trump signed legislation overturning the IRS’s controversial “DeFi broker rule,” which paves the way for accelerated growth in decentralized finance. This development could particularly help Cardano, which positions itself as an up-and-coming DeFi chain.
Co-founder Charles Hoskinson has expressed ambitions for Cardano to become the main DeFi side chain to Bitcoin. He’s also predicted a major rebound for cryptocurrencies later this year, suggesting Bitcoin could potentially rally to $250,000.
For investors with a longer time horizon, current prices may represent an opportunity. While immediate economic concerns may create volatility, the regulatory environment appears to be evolving in directions that could benefit Cardano’s ecosystem development.
The key question for traders remains whether ADA can break through the $0.70-$1.00 resistance zone. A clean break above these levels could signal a significant trend reversal, while failure to do so might result in continued sideways price action before any meaningful breakout.
Cardano’s price stood at $0.62 as of Friday morning, representing a 20% increase from its weekly low of approximately $0.50.
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