Cardano Valiantly Holds Support, ADA Rebounds to New Range Following FOMC Rate Hike
The crypto rally following the FOMC’s rate hike has instilled confidence in investors.
Earlier this week, Cardano struggled to hold ADA above support in the face of mounting sell pressure, leading to ADA teetering on the edge of the $0.3 level.
However, after an intense battle for dominance, Cardano Bulls have triumphed over the Bears, pushing ADA back into their territory, now eyeing liquidity above $0.35.
After valiantly defending the $0.30 level against rising sell orders from panicked investors, Cardano Bulls’ determination has finally paid off. Following the FOMC’s rate hike, the crypto market rally pushed ADA’s price beyond $0.31 back into Bulls’ territory, securing a 5% gain.
The overnight rally propelled Cadano’s price and led to over $600,000 in losses for bearish investors who had shorted ADA, as per CoinGlass data. Investors now appear more confident, with ADA hovering over $0.31. This was underscored by the positive long-to-short ratio, indicating a surge in buying activity and long positions from traders.
With this renewed vigor, Cardano could embark on a bullish rally and revisit the June High at $0.38. However, it all hinges on the Bulls’ continued tenacity. Should they fail, the Bears will regain control to test support at $0.30 and potentially push the price down to $0.25, hindering ADA’s journey toward the coveted $1 price level.
It’s worth noting that many macro-bullish events are in the pipeline, which could impact Cardano’s journey. The Blockchain Regulatory Certainty Act, recently marked up in the Financial Services Committee, could lay the groundwork for a more defined regulatory framework for cryptocurrencies in the US and address concerns surrounding Cardano.
Besides this, ADA holders have much to look forward to with exciting developments such as Mithril, SanchoNet, and Node 8.2.0, all set to evolve the network’s decentralization. The following weeks are crucial for Cardano, and investors will closely monitor ADA’s movements.
On the Flipside
Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of Cardano.
The FOMC’s rate hike sparked a wave of liquidations throughout the market, amounting to over $50 million.
Even with this rally, Cardano remains shy of $100 million behind Dogecoin in total market cap rankings. It must continue its upward momentum by another 3% to surpass Dogecoin.
Why This Matters
Cardano resilience in holding support showcases its strength and instills confidence in the market. The rally could signal potential bullish momentum and translate to positive returns for ADA holders. However, caution is advised, as crypto markets can be volatile and unpredictable.
More on Cardano:
More on the FOMC:
Boring FOMC Speech and Predicted Rate Hike Fails to Stir Crypto Market.