#MarketPullback
Cardano ($ADA) Faces Crypto Crash – Can It Rebound to $1 and Kickstart 2025 Strongly?
The recent crypto market downturn has severely impacted Cardano ($ADA), but the worst may have passed, and bulls are hopeful that the cryptocurrency will still experience a robust start to 2025. Cardano ($ADA) plummeted to a low of $0.76 on Friday, with its pullback from recent highs exceeding 40% at the time.
The Federal Reserve triggered a significant sell-off in the stock and crypto markets by issuing more cautious-than-expected guidance for only two additional rate cuts in 2025 on Wednesday. Since the Fed's bearish meeting, ADA futures positions worth nearly $20 million have been liquidated, according to coinglass.com.
However, Cardano's strong rebound from intra-day lows in the $0.76 range to around $0.95, which has also led to ADA reclaiming its 50-day moving average (DMA), suggests the worst may be over. $ADA is currently poised to close out a bullish hammer candlestick for this session.
As macroeconomic factors are expected to take a backseat until the end of the year, with no major US economic data releases or Fed events scheduled, focus is likely to shift back to bullish "adoption" narratives. Cardano has several highly optimistic storylines working in its favor. Here's why the price is likely to reclaim $1.0 and start 2025 on a strong note.
Please note that this is not a financial recommendation. Cryptocurrency investments are speculative, and past performance does not guarantee future results. Always conduct your own research and consider your risk tolerance.