Cardano (ADA) Price Prediction as it Crosses a Key Resistance Level

Cardano price continued its strong surge after crossing an important resistance level, and as investors remained bullish on the coin. ADA has risen for four consecutive days and is hovering at its highest level since July.

Cardano (ADA/USD) price continued its strong bullish surge on Friday as investors remained optimistic about the digital asset. ADA price rose for the fourth day in a row and reached its highest level since July. It is now trading at $0.404, which is 50% above its lowest level this year.

Cardano price soared as investors and analysts turned bullish on the coin. One of the key catalysts that have been mentioned for the coin is the upcoming launch of the BitcoinOS bridge, which will allow users to move coins from its ecosystem to and from Bitcoin.

In an X post, an analyst who goes by the name of Polkadot Leader said that the network’s struggling DeFi Total Value Locked (TVL) will surge once this bridge is launched.

Unlike Solana and Sui, Cardano’s DeFi TVL has declined over the past several months and currently stands at $249 million. In comparison, Base Blockchain, which was launched late last year, has managed to gather more than $2 billion in assets.

Similarly, Decentralized Exchanges (DEX) in Cardano, like MuesliSwap, Minswap, and SundaeSwap, are not seeing any volume. This is probably because Cardano does not have a big meme coin ecosystem.

Analysts believe that it is only a matter of time before Cardano’s ecosystem starts to perform well as developers launch meme coins on the platform. Meanwhile, Road21Bsats highlighted the formation of a falling wedge pattern by the coin, which usually leads to a bullish breakout.

Several other potential catalysts could drive Cardano price higher. From a macro perspective, two major events converged this week.

First, the United States elected Donald Trump as the next president, a move that will usher in a new era in the crypto industry. Analysts believe that the Securities and Exchange Commission (SEC) will no longer be as antagonistic as it was under Gary Gensler.

One possibility is that the SEC could approve a potential ADA ETF in the upcoming months. Under Gensler, such an approval would have been unlikely as he considers Cardano to be a security.

Furthermore, Trump’s era is being viewed positively by investors as he promised to deregulate industries and cut taxes. The latter will probably lead to an increase in US debt, which will then make Bitcoin more valuable. If this happens, altcoins like Cardano will also rally.

Second, the Federal Reserve made a relatively dovish decision on Thursday by cutting interest rates by 0.25%. Analysts believe that the bank will continue cutting rates in the upcoming months as the labor market has worsened. Cryptocurrencies like Cardano and Bitcoin perform well when rates are falling.

The Fed is not the only central bank that is cutting rates. For instance, the Bank of England (BoE) cut rates by 0.25% in its meeting on Thursday. The ECB, Swiss National Bank, and Riksbank have also cut rates.

Cardano crypto price analysis

Cardano price also has positive technicals. A daily chart analysis shows that ADA price has been on a strong bullish trend in the past few days. To be precise, it has risen for four consecutive days and is now attempting to cross above the key resistance level at $0.414, which was the highest swing on September 27.

Cardano price has moved above the 23.6% Fibonacci Retracement level. More importantly, it has also crossed the 200-day Exponential Moving Averages (EMA) and the descending trendline that connects the highest swing since June this year.

Therefore, the path of least resistance for Cardano is bullish, with the next level to watch being at $0.543, which was the 50% retracement point and is about 31% higher than the current level.