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▲ Cardano (ADA)/ChatGPT generated image ©
Cardano (ADA) saw a double-digit surge, driven by a rotation into altcoins and a breakthrough of strong technical resistance, both bolstered by the easing fears of interest rate hikes from the U.S. Federal Reserve (Fed).
According to cryptocurrency market aggregator CoinMarketCap on September 3 (local time), Cardano surged by 12.9% over 24 hours, reaching $0.224. This performance is nearly three times the 4.8% increase seen in the overall virtual asset market during the same period. As signs of macroeconomic easing sparked expectations of liquidity inflow, the broader Layer 1 sector rose by 5.4%, with capital rotation concentrating on high-beta assets like Cardano.
The catalyst for this rally was dovish remarks from a senior Fed official. Fed Governor Christopher Waller stated that the benchmark interest rate could be frozen if future inflation data supports it, sharply lowering the probability of an interest rate hike in September. With risk asset sentiment revived across the market, investors' attention is now focused on the August Consumer Price Index (CPI) report on September 11, which will determine the Fed's next move.
A technical breakout and explosive trading volume also strongly supported the upward momentum. ADA decisively broke above the psychological resistance level of $0.20 and the 7-day Simple Moving Average (SMA). The 24-hour trading volume surged by 127% to $696 million, demonstrating strong buying pressure. Online investment sentiment indicators also showed a positive shift to 5.12 points, and a TD Sequential buy signal, which has historically led rallies, was detected on the daily chart, fueling expectations of a bullish market turnaround.
In the short-term technical outlook, Cardano is testing entry into the $0.23 to $0.25 resistance zone. If it confirms a daily close above the 38.2% Fibonacci retracement level of $0.225, buying momentum is likely to continue. Specifically, if the $0.25 resistance is broken and converted into support, upside targets open up to the $0.28 to $0.31 range.
Conversely, if it encounters selling resistance near $0.25, a short-term sideways consolidation phase may ensue. Key support levels to sustain the price are the 50% Fibonacci zone and the recently breached area of $0.214 to $0.22. If the $0.20 support level breaks, there is a risk of a retreat to $0.19.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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