The cryptocurrency market is experiencing extreme fluctuations, but Cardano (ADA) is rebounding against the trend, breaking through the $1 mark!

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Affected by macroeconomic factors and investor sentiment, the cryptocurrency market saw a significant drop on Friday, with $1.42 billion in assets liquidated. However, the market quickly stabilized, and over the weekend, some cryptocurrencies began to rebound, with Cardano (ADA) performing particularly well, rising 15% and briefly surpassing the $1 mark.

Federal Reserve inflation data supports market rebound

The inflation indicator that the Federal Reserve is watching—the Personal Consumption Expenditures (PCE) price index for October—grew by only 0.1%, with a year-on-year rate of 2.4%, both below expectations. This data eased market disappointment regarding the Federal Reserve's interest rate decision on Wednesday. The Fed lowered the benchmark interest rate to a target range of 4.25%-4.5%, the lowest level in two years, while also reducing the expectation for rate cuts in 2025 from four to two.

ADA price trend: After breaking through $1, a larger increase may follow

After experiencing four consecutive days of decline, the ADA price rebounded to $0.763 on Friday, and then on Saturday, it briefly broke through $1. Although it retreated slightly, as of the time of writing, ADA has risen 14.05%, reaching $0.9579. The market is closely watching whether ADA can hold the $1 level, as breaking through this could pave the way for further increases, with a potential target of $1.34, eventually breaking the $2 mark.

Highlights and challenges of the Cardano ecosystem

According to a report by Messari, Cardano's dollar Total Value Locked (TVL) grew by 13.3%, reaching $231.6 million. However, Cardano's average daily transaction volume decreased by 15.9%, falling to 43,200 transactions, leading to a year-on-year decline in dollar revenue of 31.2%, down to $510,000. Nevertheless, the market cap of stablecoins remains strong, with USDM growing by 148.5% since its launch in March.

In the midst of market volatility, ADA's support level may be around $0.76, and its performance in the coming months will be the focus of market attention.

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