Cardano's price targets a potential increase to $1.65, as the probability of a September 25 basis points interest rate cut rises to a staggering 86% on the Fed's outlook.
Cardano Poised for Potential Breakout as Fed Decision Looms
The cryptocurrency market is abuzz with anticipation, with Cardano (ADA) taking centre stage ahead of the upcoming Federal Reserve (Fed) decision. According to market predictions, there is an 86% probability of a 25bps cut in the September Fed decision, a move that could potentially boost risk assets like cryptocurrencies.
The current price of Cardano stands at $0.8639, up 4.45% in the last 24 hours. This rise might be attributed to the strong expectation that has already influenced sentiment across risk assets, including Cardano, by pointing towards looser financial conditions.
The Cardano price chart shows a rising wedge pattern, a technical formation that often resolves with sharp movement. This wedge pattern has two critical support levels at $0.82 and $0.78, and immediate resistance near $0.95 and a next pivotal barrier at $1.05.
If these resistance levels are breached, technical analysis suggests that ADA could be primed for an upward surge. Clearing these levels could potentially lead to ADA prices reaching $1.16, with Fibonacci extensions pointing to $1.40 and ultimately $1.65.
The rising wedge pattern on the ADA price chart reinforces the potential for a breakout scenario, supporting projections of a climb towards $1.65. Such moves create supportive liquidity environments, often boosting demand for digital assets like ADA.
The upcoming inflation data will shape sentiment regarding ADA. A favourable inflation report could further strengthen the case for a rate cut, boosting the demand for Cardano and potentially pushing its price higher.
The Fed's policy, particularly future cuts, could play a significant role in shaping ADA's price movement. The 86% odds of a 25bps cut in the September Fed decision are expected to support ADA's breakout above resistance. However, Powell's guidance on future cuts could prove more decisive than the September move itself.
Cardano is entering a decisive phase where higher valuations are not just possible but expected. The cryptocurrency is positioned strongly to benefit from a likely upcoming bull market phase alongside the broader altcoin market. Recent technical breakthroughs and rising expectations, such as the increased probability of an approved Cardano ETF, are driving demand and price targets around $1.40.
In conclusion, the upcoming Fed decision and inflation data could significantly impact Cardano's price. ADA may see sharp reactions as the macro backdrop and Fed policy converge. The breakout structure confirms upside targets at $1.16 and $1.40, with $1.65 firmly in sight for ADA.
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