What Causes a 400% Cardano Price Rally?

The Cardano (ADA) price is testing near-term resistance around its 21DMA, and although a minor short-term comeback is likely, a prolonged rise is unlikely.

One week ago, ADA broke above a short-term downtrend. If it can break above its 21DMA, it may rebound to its 200DMA in the $0.70s.

Cardano Price Analysis
In the big picture, ADA continues in its multi-month $0.50-$1.20ish range.

A significant breakthrough above this area seems unlikely right now.

This is because 1) market risk appetite is low and 2) additional liquidity is unlikely soon.

While pro-crypto, the Trump administration is committed to tariffs that will hurt the US economy and raise inflation.


Stocks and crypto are suffering from slower growth. Fed officials, including Fed chair Jerome Powell, are hesitant to decrease interest rates owing to concerns about sticky inflation, making matters worse.


Altcoin seasons that favor Cardano have usually coincided with Fed liquidity injections.

Yet another liquidity rush is unlikely, therefore large cryptocurrencies like Cardano will continue to suffer.

What Causes a 400% Cardano Price Rally?
If the US economy enters recession later this year and the Fed doesn't act as quickly as expected, crypto prices might plummet.

Cardano might return to $0.30 in mid-2024.

Cardano Price Analysis
A significant rally to return the price to record highs over $3.0 per token requires many events.

The economy must first exit a recession. That would increase market risk appetite.

For altcoin season to start, the Fed must ease significantly. A new cryptocurrency season may begin if the Fed pumps the market with QE again.

ADA might surge 400% to historic highs in such conditions.

Cardano may go farther before Trump's four-year tenure ends.

The Trump administration and Congress are strongly pro-crypto, supporting regulatory initiatives to boost sector development.

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