Cardano(ADA) Potential for an 18% Jump
Cardano(ADA), currently ranked the 10th biggest cryptocurrency by market cap, has an 18% jump potential. The current price dynamics have shifted market participants’ attention towards ADA. Per the current setup, some question whether it is the right time to buy the altcoin. Notably, this comes as crypto traders digest recent trade war developments and eye a complicated macro landscape ahead.
Analyzing ADA’s Price and Macroeconomic Factors
According to Marketcap data, the ADA price was $0.62, up 0.81% over the previous day. The altcoin has surged over 20% from earlier weekly lows, a sign of more uptick. However, ADA remains trapped below all its major averages, indicating that bears are still slightly in control.
With a retest of lows possible in the sessions ahead, now seems the best time to increase short positions. However, the risk of ADA pushing higher in the short term is also growing. A major factor supporting this deduction is US President Donald Trump’s announcement on Thursday that tariffs will be delayed. As we covered in our latest report, Trump delayed tariffs against many nations by 90 days to allow for negotiation. Notably, the delay on Trump’s reciprocal tariffs does not include China. As we discussed earlier, both countries have continued to escalate economic measures against one another.
Markets were stunned by a recent increase in tariffs on Chinese goods, which rose from 105% to 125%. However, Trump’s concession for other assets was a major relief to the market, as it limits the immediate damage to global trade. Back to ADA, the altcoin will likely sustain its breakout from Monday’s price bottom around $0.50, forming a local low. This is because the ADA price reached its most oversold levels in over a month earlier this week.
Moreover, US macroeconomic data released on Thursday showed a positive Consumer Price Index (CPI). This data has eased US inflation concerns and adds to near-term upside risks. Therefore, ADA’s price could soon jump back to test its 200-day Moving Average at $0.74 if the near-term downtrend does snap. This would mean an 18% rally for ADA in the coming days.
Time to Scoop ADA?
Although ADA’s price chart shows a favorable outcome, macroeconomic concerns are not yet over. It has been barely three months since President Trump returned to the White House, and his policies have increased economic uncertainty. Market analysts worry that the US economy may fall into recession later this year. That could mean the lows for risk assets like crypto and stocks are not yet in. Therefore, buying ADA based on the assumption that the coin will surge from its current position is risky.
Notwithstanding, now is the right time for investors with a longer-term HODLing strategy to buy ADA. Although the Trump administration is pursuing unfavorable policies for the near-term economic outlook, analysts are optimistic things will improve eventually.