- Cardano price has been showing positive movement, rising above its 50-day moving average (DMA).
- Analysts are debating whether the current market conditions favour a new altcoin season, which could lead to significant gains for ADA.
The Cardano price has been on the rise, with bulls taking control. The price moved above its 50-day moving average, signalling positive momentum. While some analysts predict a potential 10x rally for Cardano, others remain cautious due to current macro conditions.
Current Market Sentiment
Cardano‘s recent performance shows a promising trend. According to CoinMarketCap, the price has decreased by 1.77% in the last 24 hours, but it increased more than 13% over the past week. This surge is partially attributed to positive news related to trade and Bitcoin’s recent surge above $93,000, which has boosted altcoins. “The United States is preparing to reduce tariffs on China by 50%,” as WSJ reported.
According to technical analyst Ali_charts, Cardano recently broke out of a pennant structure, projecting a move towards $0.77. If Cardano surpasses its late-March highs and its 200-day moving average around $0.75-0.77, it could quickly challenge the early March highs above $1.10. “Cardano $ADA is breaking out. $0.77 next,” he stated.
However, not everyone shares this optimistic view. Some analysts believe that current macro conditions, such as sticky inflation and a weakening US dollar, may deter retail investors from investing heavily in riskier altcoins like Cardano.
X user Elon Money suggests that the current macro environment isn’t suitable for a new altcoin season.
I do believe some altcoins will see growth, but nothing insane, mostly because it’s institutions, not retail, that are entering the space now. And they’re not touching shitcoins, they’ll buy BTC, which will act as a defensive asset in a weak-dollar, high-inflation environment. That’s why I’m still sceptical toward 99% of altcoins. Most of them won’t even get close to their previous ATHs. Only the top 1% might make it back,
he said.
Fellow X user VIKTOR agrees, noting that altcoins are still in a structural bear market. They suggest that a major liquidity injection by central banks and a stronger economy are needed for the altcoin season to truly kick off. “Altcoins remain in a bear market and the fact that all the altcoin top performers today are absolute dogshit confirms it.”
Currently, the US economy faces potential recession risks due to economic uncertainty and reduced government spending. Elevated US bond yields and struggling stock markets further complicate the outlook for altcoins.
For Cardano traders, the key takeaway is to remain cautious. While a return to recent highs above $1.0 is possible, the conditions for a massive rally aren’t yet in place.
Savvy investors see the current market conditions as a prime opportunity to accumulate Cardano at discounted prices, anticipating substantial growth in the years ahead. The pro-crypto stance of the Trump administration, which is introducing supportive policies for the U.S. crypto industry, adds to this optimism.
Cardano, reportedly mentioned by Trump as one of his favoured cryptocurrencies, is well-positioned to benefit from these developments. Analyst Deezy has even projected a potential 10x rally, forecasting that Cardano could reach $7 per token before the end of Trump’s term in early 2029.