Cardano (ADA) surged 18.8% in four days, rebounding from $0.51 to $0.606
The bounce coincides with Trump’s 90-day tariff pause for over 75 countries (excluding China)
Technical analysis shows ADA breaking out of a falling wedge pattern with bullish RSI divergence
Major resistance exists at $0.70-$1.00, where the 50, 100, and 200-day EMAs cluster
If history repeats, ADA could potentially surge 70% to challenge the $1 mark
Cardano’s native token ADA has experienced a strong rebound during the second week of April, climbing 18.8% from $0.51 to approximately $0.606 over four days. This upward movement comes as crypto markets find breathing room amid easing global trade tensions.
The primary catalyst appears to be US President Donald Trump’s announcement of a 90-day pause on retaliatory trade measures for more than 75 countries, along with a flat 10% reciprocal tariff. However, this delay notably excludes China, with both nations continuing to escalate economic measures against each other throughout the week.
This shift in trade policy has injected some confidence across risk assets, helping Bitcoin maintain its position around $75,000 while providing altcoins like Cardano with much-needed momentum.
For ADA specifically, the bounce aligns with technical factors that suggest this may not be a random price jump. The token has been trading within a falling channel pattern since December 2024, and the current rebound coincides precisely with the pattern’s support zone.
Positive US Consumer Price Index data, which has eased inflation concerns, further contributes to the short-term bullish outlook.
Technical Signals Point to Possible Continued Uptrend
From a technical analysis perspective, several indicators suggest the potential for continued upward movement. ADA is showing a bullish divergence on its Relative Strength Index (RSI) – while price formed a lower low, the RSI printed a higher low, hinting at strengthening buyer interest and momentum.
This isn’t the first time ADA has bounced from this same support level. During the previous rebound, the token staged a 53%+ rally, peaking just above $1. If history repeats itself, analysts suggest we could see a potential 70% rally from current levels.
Cardano $ADA is approaching a major level of resistance at $0.65
Failure to break above, could see a push down to the key support level at $0.46 pic.twitter.com/Voo1BZz6V5
The Cardano price had reached its most oversold levels in over a month earlier this week, suggesting that Monday’s price bottom around $0.50 may prove to be a local low. This technical setup increases the possibility that the near-term downtrend could be broken, potentially sending ADA to test its 200-day moving average at $0.74.
However, the path upward isn’t without obstacles. ADA still remains in a downtrend versus its late March highs and below all of its major averages, indicating bears might maintain control in the near term.
Key Resistance Levels Will Test Bull Momentum
The most critical challenge for Cardano bulls lies ahead at the $0.70 price level, where a cluster of important technical indicators converge. The 50, 100, and 200-day Exponential Moving Averages (EMAs) are all grouped around this price point, creating a formidable resistance wall.
Breaking through this EMA cluster will be essential for ADA to confirm a true bullish reversal rather than a temporary bounce. Without clearing this hurdle, the token may face more sideways price action before any sustained breakout.
Beyond the $0.70 level, the next major resistance zone sits around the $1 mark. If bulls can push past these barriers, it could open the path toward higher targets.
Market analysts remain cautious yet optimistic about ADA’s prospects. The token’s bounce off multi-month support appears legitimate from a technical standpoint, but confirmation will require sustained buying pressure and clear breaks above key resistance levels.
Macro Concerns May Still Impact Long-Term Outlook
While short-term technical signals appear promising, broader economic factors continue to cast uncertainty over the crypto market’s longer-term trajectory. Less than three months into Trump’s presidency, his policies have increased economic uncertainty despite their popularity.
Trade tensions continue to affect business sentiment and investment while raising inflation concerns. The administration’s austerity measures are reducing fiscal stimulus and creating uncertainty in the job market.
Some analysts warn that the US economy could face recession later this year or may already be in one, which could mean that lows aren’t yet in for risk assets like stocks and cryptocurrencies.
However, for investors with longer time horizons, there are positive developments. The Trump administration is implementing policies that may benefit the crypto industry over time. Just yesterday, Trump signed a bill overturning the IRS’s “DeFi broker rule,” potentially paving the way for accelerated growth in decentralized finance.
This could particularly benefit Cardano, which positions itself as an up-and-coming DeFi chain. Co-founder Charles Hoskinson has expressed ambitions for Cardano to become the main DeFi side chain to Bitcoin.
In the short term, ADA’s price action will likely be determined by whether bulls can maintain momentum and break through the key resistance levels at $0.70 and beyond. If successful, the technical setup suggests the potential for a sustained rally toward the $1 mark.
As the market digests recent trade developments and monitors the macroeconomic landscape, Cardano’s price movements over the coming days will provide clearer signals about whether this bounce marks the beginning of a significant reversal or merely a temporary reprieve in the ongoing downtrend.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
