Cardano Surges 20%: Bullish Signal for $1.30 Retest

The Cardano (ADA) price has staged a significant intra-day rebound, surging over 20% from its earlier lows of $0.75 to reach around $0.93. This remarkable turnaround has triggered a major technical buy signal, reigniting hopes for a potential retest of the cryptocurrency's December 2024 highs above $1.30.

Broader market sentiment has improved, with positive developments such as the potential signing of a minerals deal between the USA and Ukraine, which could help end the ongoing conflict. Additionally, growing confidence in the Federal Reserve's (Fed) willingness to deliver more rate cuts this year has bolstered market optimism.

The Cardano price has broken above a medium-term downtrend following a Sunday surge, driven by President Trump's announcement of including Cardano in the US crypto reserve. Tuesday's rebound from intraday lows, where the Cardano price retested this former downtrend, is a strong technical signal that bulls have regained control of the market.

Chart analysis now suggests a high likelihood that the Cardano price will move back towards its late 2024 highs in the $1.30 area. Despite the complicated macro backdrop, with elevated risks and potential two-way volatility, the outlook for the Cardano price remains tilted to the upside.

The Trump administration's intention to include Cardano in its crypto reserve, along with other "made in America" cryptocurrencies like Solana and XRP, represents a significant upside wild card for Cardano. Additionally, the potential for the US Treasury to adopt Cardano as its decentralized and transparent payment ledger, coupled with the high likelihood of spot Cardano ETFs receiving approval in 2025, could make 2025 a record year for Cardano adoption.

Furthermore, Cardano's push to become the go-to Bitcoin DeFi side-chain could also be a major narrative driver. Given these factors, while market conditions are expected to remain bumpy, risks are strongly tilted towards the upside for the Cardano price this year, with a retest of 2021 highs above $3.00 being a distinct possibility. ADA is a strong candidate for one of the best cryptocurrencies to accumulate in the months ahead.