- Summary:
- Cardano price has returned to the upside on a broader market recovery, but faces potential rejection near its VWMA level.
Cardano price has reclaimed the $0.600 support after a massive 13% rally on Wednesday. The coin traded at $0.626 at the time of writing, down by 0.8% on the daily chart as the market corrected on Thursday. The momentum on ADA price mirrors that of the wider market which has rebounded on the back of upbeat investor sentiment following US trade tariff pause.
US President Donald Trump announced on his Truth Social account that he had paused the high tariff rates previously imposed on 60 countries for 90 days. Instead, all trading partners are back to the baseline 10% tariff rate. However, Trump raised tariffs on Chinese goods to 125%, with the tariffs against Mexico and Canada remaining unchanged.
The thawing of trade tariff risk has strengthened the outlook for the global economy after recent recession fears. The ripple effect is reduced risk aversion, which augurs well for cryptocurrencies. Therefore, ADA could potentially stay on the uptrend, as such sentiment will likely attract institutional and whale investors.
On the downside, the risk on Cardano price could come from a near-term selloff from traders who have recently bought the coin below $0.600. That could result in a short-term pullback, but a continuation is likely if the current trade tariff fundamentals remain unchanged. ADA price will need to reclaim its Volume Weighted Moving Average (VWMA) as a support level on the daily chart to build traction for a reversal.
Cardano Price Prediction
The momentum on Cardano price favours the buyers to be in control if action stays above $0.614. With the buyers in control, the ADAUSD pair will likely meet the first resistance at $0.659. A sustained upward momentum will break above that level and clear the path to test the second barrier at $0.689.
On the other hand, the momentum could shift to the downside if the price breaks below $0.614. The downside will likely find its first support at $0.576. The upside narrative will be invalid if the price breaks below that level. In addition, a stronger downward momentum could take the price lower to test $0.542.
