- Cardano (ADA) is showing signs of a potential 18% rebound amid easing inflation fears and oversold conditions.
- While short-term risks remain, long-term investors may see this as a strong buying opportunity given Cardano’s growing role in DeFi.
Despite trading in a bearish trend, Cardano (ADA) has shown signs of life this week, rallying more than 20% from its weekly lows to hover around $0.62. While it remains below key technical levels and stuck in a downtrend since late March, analysts are eyeing a potential 18% short-term breakout — sparking the question: is now the time to buy?
Also read: SHIB Team Issues Urgent Scam Alert: How to Stay Safe in the Crypto Market
The altcoin market is navigating a tricky macroeconomic landscape. U.S. President Donald Trump’s decision to delay tariffs on several countries has somewhat cooled global trade tensions, offering temporary relief to markets. However, China remains in the crosshairs, and continued escalation between the two giants adds layers of uncertainty.
For Cardano, the price action suggests an important inflection point. Technical indicators show ADA reached its most oversold levels in over a month earlier this week. If this bottom holds — particularly near the $0.50 mark — bulls could regain m omentum. A successful breakout above the downtrend could push the token toward its 200-day moving average near $0.74, representing a potential 18% gain.
On the macro side, better-than-expected U.S. CPI data has eased inflation fears, potentially supporting risk assets in the near term. However, economic uncertainty looms large. Concerns about a potential U.S. recession, shrinking fiscal stimulus, and cautious business sentiment could continue to weigh on speculative assets like crypto.
For short-term traders, the current environment remains risky. ADA could still face downward pressure if macro conditions deteriorate. But for long-term investors, the picture is far more optimistic.
The Trump administration’s pro-crypto stance is starting to bear fruit. Just this week, a controversial IRS rule targeting DeFi was overturned — a move that may unlock a wave of innovation in decentralized finance. Cardano, with its growing DeFi ambitions, stands to benefit.
Co-founder Charles Hoskinson envisions Cardano becoming a key DeFi sidechain to Bitcoin. And if his bullish outlook holds — including a potential crypto market rebound later this year — ADA could be positioned for significant growth.
Bottom line: Volatility remains, but for believers in Cardano’s long-term vision, this may be a golden buying opportunity.
