Cardano Price Slips 3% as Market Uncertainty Persists – Can ADA Regain $1 Mark?
Highlights:
- ADA slips 3% and trades at $0.7306 amid rising volume
- White House and Musk news fail to lift sentiment
- Fed, trade war fears add uncertainty
The Cardano price has slumped 3% in the last 24 hours to trade at $0.7306 as of 5 a.m. EST on an 18% pump in trading volume to $905 million. Cardano is also down 11% on the week, with bears firmly in control despite being up 38% from Monday’s crash lows. Recovery has stalled, and a lack of bullish catalysts weighs on altcoin markets.
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The White House is considering a digital asset reserve and a sovereign wealth fund, but none of that will be updated anytime soon. The recent chatter by Elon Musk about making US Treasury payments on-chain sparked speculation, but traders aren’t counting on Cardano benefiting from this.
Cardano Founder: “February is going to be a very crazy month. You’ll see.” $ADApic.twitter.com/CAusjsSUbW
— Altcoin Daily (@AltcoinDailyio) February 1, 2025
The key focus is now on the macroeconomic aspects that might affect Fed rate cut expectations, including Friday’s US jobs data. Added to this are concerns of a possible Trump-led trade war contributing to market volatility, making ADA unpredictable in the short term.
The projection of $1 in 2025 is speculation since market trends, macroeconomic conditions, and ecosystem development will influence the actual price action. Investors must rely on technical and fundamental analysis rather than marketing-driven projections.
Cardano Price Could Rebound on the Lower Boundary of the Channel
On the 1-day timeframe, ADA/USD has reached a fresh price of $0.7284, with a daily high of $0.7362 and a low of $0.7029, up 3.46% on the day. This indicates a situation where the formation of a bear channel appears to occur after a solid upward rally. First, ADA consolidated within a range and then faced a big breakout upward, along with a crossover by the moving average, which fired an upward impulse. After the peak, the price started a downtrend, forming a descending channel.
The 50-day MA is well above the current price at $0.9407 and has been a harbinger of bearishness for quite some time. A penetration above this level would imply the possibility of a trend reversal. The MACD indicator also remains below zero, with its line at -0.0256 and its signal line at -0.0422, confirming bearish momentum. But the histogram has started weakening, suggesting that selling pressure is weakening and buyers could soon step in.
The RSI is 30.80, close to the oversold region, indicating that the asset is close to a potential reversal. A move above 30 will confirm the increase in buying pressure. Key support levels include $0.70, which coincides with the lower boundary of the bearish channel. Upside resistance is at $0.80, while a major breakout level is at $1, which is the 50-day MA.
A break above the bearish channel would see the ADA/USD test $0.80, rallying toward $1. A slip below $0.70 could trigger further downside toward the lower support lines. A possible trading idea: Buy on a breakout above $0.75, target $0.94, and place a stop-loss below $0.68 to minimize risk.
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Charles Kibue
Charles Kibue is a cryptocurrency researcher and writer with published works on Crypto2Community and a range of other sites. He has also worked as a technical writer, researching NFTs and crypto projects. Charles is an English Literature graduate residing in Kenya. He possesses additional expertise in market analysis and offers accurate and reliable insights, staying up-to-date with the latest developments in the crypto industry. Beyond his professional pursuits, Charles enjoys hiking and horse riding in his leisure time.
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