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Cardano Price Eyes $1.20 as Trump’s Inauguration Fuels Market Optimism
The cryptocurrency market has been witnessing increased optimism in the wake of Donald Trump’s inauguration, with Cardano (ADA) specifically poised to break above $1.20 in the coming days.
ADA’s price took a hit on Monday, dropping below the critical $1 threshold after opening at $1.05 and peaking at $1.10 earlier in the week. The cryptocurrency currently trades at $0.9726, a clear indication of profit-taking by short-term traders.
While Bitcoin (BTC) has soared past the $100,000 mark amidst market volatility, ADA has faced consolidation pressures, largely due to the aforementioned profit-taking. However, this consolidation is expected to be short-lived as the cryptocurrency prepares for a potential breakout above $1.20.
Despite its recent decline, Cardano’s ecosystem continues to witness an influx of new users, suggesting growing interest in the blockchain’s developments. This trend began with the 30-day countdown to Trump’s inauguration and has been fueled by the promise of zero crypto taxes and a more favorable regulatory stance towards U.S.-based cryptocurrency projects.
The on-chain indicators, including the Bull-Bear Power turning positive and the Parabolic SAR supporting upward momentum, strongly suggest buyer dominance. Furthermore, the Donchian Channels pinpoint $1.20 as a critical resistance level that must be cleared for the cryptocurrency to continue its upward trajectory.
In the event of a successful breakout above this mark, Cardano is expected to attract additional buying pressure from investors seeking to capitalize on the trend. On the flip side, failure to clear this level risks exposing ADA to downside pressures, with immediate support at $1.00 and potential further declines targeting $0.92.
The proposed tax reforms by Trump’s administration have generated significant excitement around U.S.-based cryptocurrency projects, including Cardano. This policy shift has already drawn new investors into the market, as evidenced by a 10,000 increase in funded wallets since December 20. The steady growth in adoption often precedes bullish price action.
Moreover, increased on-chain activity from newly funded wallets is likely to enhance Cardano’s network value, further fueling its upward trajectory.
As such, it appears that the market sentiment has become increasingly optimistic in anticipation of a breakout above $1.20, driven by the expected tax reforms and regulatory changes.
Source: coinchapter.com
