The cryptocurrency market experienced a significant drop on Friday, resulting in $1.42 billion in liquidations across various assets. However, over the weekend, several cryptocurrencies showed signs of recovery, with Cardano’s ADA price rising by 15% and briefly reaching the $1 mark. This rebound was attributed to a mix of macroeconomic factors and investor sentiment. The market was also influenced by the Federal Reserve’s interest rate announcement and the release of the personal consumption expenditures price index (PCE).
The PCE, the Fed’s preferred inflation indicator, came in lower than expected in October, with a 0.1% increase and a 2.4% annual rate. This news seemed to soften the blow of the Fed’s interest rate decision to drop its benchmark rate by a quarter percentage point to a target range of 4.25%-4.5%. Chair Jerome Powell and policymakers also adjusted their expected path for interest rates in 2025, now predicting only two reductions as opposed to the previously expected four.
Following four consecutive days of decline, ADA’s price sharply rebounded from lows of $0.763 to highs of exactly $1 in Saturday’s trading session before slightly retracing. At the time of writing, ADA was up 14.05% in the last 24 hours to $0.9579. The market is closely watching ADA’s performance as it battles to hold the $1 mark, with potential for further gains up to $1.34 and $2. Support levels are seen at the daily MA 50 at $0.877 and the $0.76 low.
The recent Messari Q3 report, “State of Cardano Q3 2024,” provided insights into Cardano’s performance. The report highlighted a 13.3% increase in Cardano’s total value locked (TVL) in USD to $231.6 million, as well as a 5.4% QoQ increase in stablecoin market cap to $20.7 million. The USDM stablecoin has seen significant growth since its launch in March, with a 148.5% QoQ increase to $7.9 million. However, revenue in USD fell by 31.2% QoQ to $0.51 million, influenced by a 15.9% quarterly decline in average daily transactions to 43,200.
In conclusion, the cryptocurrency market’s recent volatility has been influenced by a range of factors, including macroeconomic news, investor sentiment, and the Federal Reserve’s interest rate decisions. Cardano’s ADA has shown resilience in the face of market turbulence, with a strong rebound in price following a period of decline. The upcoming days will be crucial for ADA as it seeks to break through the $1 mark and potentially test higher price levels. The Messari Q3 report provides valuable insights into Cardano’s performance, indicating growth in TVL and stablecoin market cap despite challenges in revenue and daily transactions. Overall, Cardano’s performance in the market remains closely monitored by investors and analysts alike.
