The price of Cardano (ADA) surged by an impressive 13% on Wednesday, buoyed by a less aggressive approach from US President Trump regarding his trade conflict with various countries. This development spurred a significant uptick in risk asset markets.
Trading approximately at $0.63, Cardano’s value has risen a remarkable 23% since hitting lows of around $0.50 earlier in the week.
On Wednesday, President Trump announced a 90-day freeze on the introduction of new tariffs with select countries.
Good news! Tariffs delayed for 90 days… Let’s hope for a productive resolution… pic.twitter.com/gk8U1eFebg
— Mark Humphery-Jenner, PhD (@humpheryjenner) April 9, 2025
However, he did escalate tariffs on Chinese imports to 125%, citing a “lack of respect that China has shown to the world’s markets.”
With Cardano and other major cryptocurrencies, along with stock markets, showing signs of overselling at earlier lows, the conditions were ripe for a recovery.
The retreat from some of Trump’s tariff threats served as the catalyst traders needed, prompting short positions to close and inviting dip buyers back into the market.
This raises the question: Is this the beginning of a potential price rally for Cardano back to its previous highs around $1.30 seen in December?
Where Next for the Cardano Price – Back to All-time Highs?
The notable rally on Wednesday has prompted speculation among traders about whether Cardano’s price may have reached its nadir and if a return to the late-2024 highs is feasible.
The easing of trade war tensions and the market’s previous bearish stance hint at the likelihood of a local low having formed.
A gradual recovery could unfold in the coming days, provided no further escalations in trade war rhetoric disrupt market sentiment.
However, uncertainties remain. The ongoing trade disputes between the US and China continue to intensify, despite a cooling narrative with other nations.
Macroeconomic factors may also introduce volatility. Persistently high inflation rates, which could further increase as the implications of tariffs materialize, and a strong labor market impede the Federal Reserve’s ability to ease policies that might support lagging markets and a slowing economy.
Consumer Price Index (CPI) data set for release later this week could bolster the argument for the Fed to maintain its current stance.
CPI day tomorrow. Estimate is 2.8% but Truflation has us at 1.34%. I expect we’ll surpass expectations; however, I doubt the Fed will feel they’ve truly “beaten” inflation, given that the impact of tariffs is yet to be fully realized. It’s going to be… pic.twitter.com/LHfUqwf52y
— World War Bitcoin (@WWBitcoin) April 9, 2025
Currently, money markets anticipate 100 basis points of easing by year-end, as indicated by the CME’s Fed Watch Tool. There is a possibility that unexpectedly high inflation data could disappoint market expectations and dampen risk appetite.
US treasury markets are also signaling distress, with the yield on the 10-year note rising 45 basis points from earlier lows to about 4.30% as of early Thursday trading.
Despite a significant correction in US stock markets over recent weeks, US long-dated yields remain above 4.0%, leaving investors discontented with the sluggish movement in US bond yields.
In this complex environment, confidence among both retail and institutional investors may be lacking, making a quick return to cryptocurrencies like Cardano less likely.
Cardano Back to $0.30?
Bearish technical indicators and a lack of compelling narratives specific to Cardano amplify the risk of further downward movement in the short term.
Despite a robust rebound from recent weekly lows, Cardano continues to reside within a broader downtrend and remains significantly below its major moving averages.
The anticipated benefits touted regarding Cardano’s association with a pro-crypto Trump administration have yet to materialize.
Notably, Cardano has not been chosen as the blockchain for Treasury payments, and co-founder Charles Hoskinson did not secure a position in Trump’s crypto advisory circle.
Nevertheless, Cardano’s current price persists at roughly double its pre-Trump election levels.
Considering a potential deterioration in the market outlook combined with diminishing retail enthusiasm, Cardano’s price could drift back to its mid-2024 range within the $0.20s to $0.40s.
One key development to monitor is the emerging collaboration between Ripple and Cardano. The implications of this partnership remain uncertain, raising questions about whether it will result in positive momentum for either cryptocurrency.
BREAKING: Ripple $XRP just released a video and it opens with the Cardano $ADA logo. Something big is coming… Are you bullish enough for this? pic.twitter.com/bra2cEp6Pe
— Julia (@CryptoJulzss) April 7, 2025
The post Cardano Price Analysis: ADA Bounces as Trade Wars Ease, But $0.30 ADA Remains Likely appeared first on Cryptonews.
