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Joel Frank
Joel Frank
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Cardano (ADA) has been able to clamber back to the north of $0.70 at the start of the week, and following last week’s sharp decline, could be setting up for a nice rebound this week.
ADA appears to be probing for a breakout to the north of a multi-day bearish trend channel that the bulls will be hoping could open the way to a push back towards resistance in the $0.80 area.
A break above this area could embolden the bulls, who have taken heart recently from Cardano’s strong rebound from its 200DMA last Monday.
Rebounds like this from the 200DMA are a strong indication that a bull market in an asset class is still very much alive, despite recent volatility.
Macro events could easily spoil the party for Cardano this week – fears related to Trump launching new trade wars remain elevated, and US CPI inflation data is coming out on Wednesday.
If this comes in hot, that would undermine market expectations for rate cuts from the Fed this year, weighing on risk assets and cryptocurrencies like Cardano.
However, in the absence of macro hiccups, things are looking good for Cardano right now. As mentioned, the technical set up looks nice, but bullish Cardano narratives might also come to the forefront this month.
February Could Be Massive For Cardano – Here’s Why
Cardano co-founder Charles Hoskinson hinted earlier this month that “February is going to be a very crazy month” before mentioning some “stuff going on” behind the scenes.
He then responded to a post speculating that he might be set to meet with important figures in the White House, including Elon Musk and David Sacks, fueling speculation he could be working with the White House on some sort of project.
All of this is fueling rampant speculation that Cardano may be selected by the US Treasury as the blockchain to use to increase transparency surrounding government payments.
Even analysts like Lark Davis are speculating as much.
Elon Musk’s D.O.G.E has launched an all-out assault on what it believes is rampant fraud and abuse of taxpayer funds across a variety of government departments.
And moving all spending and government financial activity on-chain has been touted as a potential idea to increase transparency and reduce fraud.
What This Means For Cardano
Its far to early to think that Cardano might be selected as the blockchain to run US Treasury payments on top of.
It has some great characteristics that make it a great fit, but its low adoption so far, including for stable coin payments, might give Musk and the team at D.O.G.E pause.
That said, should the odds of Cardano being integrated in some way into a government payments system start to rise this month, that could be a massive boon for the ADA price.
We could be talking about a quick rush back to record highs above $3.0 and beyond.
So, for those willing to take a risky bet, but with a lot of upside potential, Cardano is a good candidate for best crypto to buy now.
Alternatively, for the more cautious crypto investors looking to gain some exposure to the sector, Bitcoin (BTC) remains a strong bet.
Its inevitable march towards global adoption continues to accelerate as institutional adoption surges and nation-states, including the USA, examine the possibility of establishing BTC reserves.
