Cardano is on the rise today, and several factors suggest that this upward trend for ADA is likely to continue.
Recently, Cardano bounced back strongly, climbing 12.5% since hitting a low of $0.857 on January 28. This recovery follows support from its 100-day exponential moving average (EMA), which could lead to further gains. As of now, ADA is trading at $0.956, marking a 7% increase in the last 24 hours.
So, what’s driving the price of ADA up today? Here are a few key points:
- The rally on January 28 aligns with a broader recovery in the crypto market.
- The Cardano Foundation has approved the Plomin upgrade.
- Classic technical patterns suggest a price target of $1.90 for ADA.
The positive sentiment isn't just about Cardano. The entire crypto market is seeing gains, largely thanks to Bitcoin’s recovery above $102,000 after dipping to $97,750 on January 27.
Here are some highlights:
- Bitcoin (BTC) led the way, rising 3.3% over the last day and trading at $102,733.
- Ethereum (ETH) jumped more than 6.8%, trading just below $3,200.
Other major cryptocurrencies, including BNB Chain, XRP, and Dogecoin, also saw significant increases in the past 24 hours. Overall, the total crypto market cap rose by 3.87%, now sitting at $3.51 trillion as of January 28.
This market performance comes as traders await the U.S. Federal Reserve’s decision on interest rates.
Looking ahead, the Federal Open Market Committee (FOMC) will meet on January 28 and 29, with a decision expected on January 29.
Most analysts believe the Fed will keep the federal funds rate steady in the range of 4.25% to 4.5%. The chance of rates remaining unchanged at the January 29 meeting is estimated at 99.5%, according to the CME FedWatch tool.
Some market watchers expect the earliest potential rate cut to occur in June, with current odds at 45.8%.
Now, let’s talk about the Cardano Foundation's recent approval of the Plomin upgrade, which has contributed to ADA's bullish performance on January 28.
The Cardano Foundation (CF), a key supporter of Cardano, voted in favor of the upcoming Plomin Hard fork. They participated in the Interim Constitution Committee (iCC) that reviewed protocol changes. CF confirmed that the Plomin hard fork is constitutional. They stated:
“The governance action to hard fork to Protocol Version 10 (‘Plomin’) is constitutional. It fulfills all procedural requirements and complies with guardrails.”
As for ADA's price, it is now eyeing $1.90.
The gains on January 28 are part of a consolidation pattern within a symmetrical triangle. If confirmed, this could lead to a significant upward breakout.
Here's how it works: symmetrical triangles form when price action consolidates between converging trendlines. This usually precedes a breakout in the direction of the prevailing trend. The expected move for this breakout is calculated by adding the triangle's height to the breakout point. This sets a long-term price target for ADA near $1.90, which is about a 96% increase from current levels.
In the short term, keep an eye on the resistance zone around $0.962, which also aligns with the 50-day simple moving average (SMA). For ADA to boost its breakout chances, it needs to push past this barrier with strong momentum and volume. Additionally, to confirm the breakout from the symmetrical triangle and aim for the $1.90 target, ADA must also overcome the resistance from the triangle’s descending trendline at $1.13.