Cardano price has experienced a significant decline, losing nearly 5.5% today, which has raised concerns among traders regarding its potential future trajectory. This recent downturn in ADA can be largely attributed to the broader cryptocurrency market selloff. Investors appear to be adopting a cautious approach, with some adjusting their portfolios in anticipation of the highly anticipated Federal Reserve interest rate decision scheduled for later today.
The U.S. Federal Open Market Committee (FOMC) is expected to announce a 25 basis point policy rate cut. This potential policy shift could significantly enhance the attractiveness of digital assets among traders, thereby fostering expectations of increased liquidity within the market. Furthermore, the ongoing optimism surrounding altcoin Exchange Traded Funds (ETFs) and the possibility of an ADA ETF approval could also contribute to a price surge for Cardano.
Amidst these market dynamics, a prominent market pundit has shared a bullish outlook for Cardano's price. This analyst has indicated that the top altcoin might be on the verge of a substantial move, highlighting a critical resistance level at $0.8. Should this resistance be overcome, the analyst has set an ambitious price target for the asset, which has garnered considerable attention from market participants.
Cardano Price Slips as Crypto Liquidation Hits $500M
Cardano price has recorded a pullback of over 5.5% today and is currently trading at $0.6033. Its trading volume has seen an increase of more than 3.3%, reaching $1.3 billion. This dip occurs amidst a broader market selloff, as indicated by a 2.3% decrease in the global crypto market, which now stands at $3.8 trillion.
Data from CoinGlass reveals that the crypto market has experienced liquidations totaling approximately $470 million, suggesting a cautious stance among traders. It appears that investors are awaiting the U.S. FOMC update before making significant investments in digital assets. However, ADA Futures Open Interest has remained relatively flat, indicating a muted sentiment in the market.
Many market observers anticipate a potential recovery in ADA's price, fueled by speculation surrounding a possible Cardano ETF approval. Notably, altcoin ETFs have garnered significant interest, with a multitude of investment instruments recently becoming available. In related developments, leading entities such as 21Shares have filed for a Hyperliquid ETF, further bolstering positive market sentiment.
Analyst Predicts ADA Price Breakout
The anticipated Fed rate cut today, coupled with dovish remarks from Fed Chair Jerome Powell, could provide a much-needed stimulus to the cryptocurrency market. Such a development could also facilitate a strong influx of funds into altcoins like Cardano, Solana, XRP, and others.
Despite the recent slump in ADA's price, analysts remain optimistic about a potential breakout for the cryptocurrency. In a recent post on X, analyst Ali Martinez suggested that Cardano's price might be preparing for a significant upward movement. Martinez noted that the current consolidation phase hints at a bullish breakout ahead for ADA, indicating that the crypto is trading within a symmetrical triangle pattern and is poised for a potential 90% move.
According to Martinez, increased buying pressure could enable Cardano to breach the $0.8 resistance level, which could then trigger a bullish run for the asset. Based on his analysis, sustaining the price above $0.8 could lead to Cardano reaching $1.7 in the near future.
However, investors should be aware that these technical indicators do not guarantee the asset's performance. Fundamental factors, such as geopolitical issues, macroeconomic conditions, and other external developments, significantly influence broader market sentiment. While current market trends appear positive, any unforeseen developments could trigger selling pressure in the market.
For now, all attention is focused on the U.S. FOMC interest rate cut decision and Fed Chair Jerome Powell's statements regarding the central bank's potential future monetary policy moves.