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Cardano (ADA) has managed to rise back above $0.70 at the start of the week, and after last week’s significant drop, it may be setting the stage for a favorable recovery this week.
ADA appears to be testing for a breakout above a multi-day bearish pattern channel, which the bulls hope could pave the way for a return towards resistance in the $0.80 range.
A move above this level could strengthen the bulls, who have recently found encouragement from Cardano’s robust recovery from its 200DMA last Monday.
Such rebounds from the 200DMA are a strong signal that a bull market in an asset class remains very much intact, despite recent fluctuations.
Macro events could potentially disrupt Cardano’s momentum this week – concerns regarding Trump initiating new trade wars are still high, and US CPI inflation data is set to be released on Wednesday.
Key events this week:
US CPI Inflation MoM: Observe inflation trends and their potential impact on monetary policy.
Fed Chair Powell Testifies: Important insights into the Fed’s economic outlook.
Retail Sales: Crucial for understanding consumer spending trends. pic.twitter.com/wnAvQBkm1z
— PrimeXBT (@PrimeXBT) February 10, 2025
Key events this week:
Fed Chair Powell Testifies: Important insights into the Fed’s economic outlook.If the data comes in strong, it could undermine market expectations for interest rate cuts from the Fed this year, putting pressure on risk assets and cryptocurrencies like Cardano.
However, in the absence of macroeconomic disruptions, the outlook for Cardano appears positive at this moment. As noted, the technical setup looks promising, and bullish narratives surrounding Cardano may also gain traction this month.
February Could Be Significant For Cardano – Here’s Why
Cardano co-founder Charles Hoskinson suggested earlier this month that “February is going to be a very crazy month” while alluding to some “developments happening” behind the scenes.
Cardano Founder: “February is going to be a very crazy month. You’ll see.” $ADA pic.twitter.com/CAusjsSUbW
— Altcoin Daily (@AltcoinDailyio) February 1, 2025
He subsequently responded to a post speculating that he might be set to meet with key figures in the White House, including Elon Musk and David Sacks, fueling speculation that he could be collaborating with the White House on some form of initiative.
Could be more than one
— Charles Hoskinson (@IOHK_Charles) February 10, 2025
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This has sparked widespread speculation that Cardano may be selected by the US Treasury as the blockchain to enhance transparency regarding government expenditures.
Even analysts like Lark Davis are making similar speculations.
JUST IN: Lark Davis, with over 627,000 Subscribers, states “#Cardano $ADA could be suitable as the blockchain for US Treasury transparency, if Elon Musk can facilitate it. Charles Hoskinson is engaged, he’s meeting all the right people in Washington, DC. It could happen.”
pic.twitter.com/HKk99fNyhW
— Angry Crypto Show (@angrycryptoshow) February 8, 2025
pic.twitter.com/HKk99fNyhWElon Musk’s D.O.G.E has launched a comprehensive campaign against what it perceives as widespread fraud and misuse of taxpayer funds across various government departments.
Transitioning all spending and governmental financial activities on-chain has been proposed as a potential strategy to enhance transparency and mitigate fraud.
What This Means For Cardano
It is premature to assume that Cardano may be selected as the blockchain for US Treasury funds.
It possesses several favorable attributes that make it a strong candidate, but its limited adoption thus far, including for stablecoin transactions, may give Musk and the D.O.G.E team pause.
That said, if the likelihood of Cardano being integrated into a government funding system begins to increase this month, it could significantly benefit the ADA price.
We could be looking at a rapid surge back to record highs above $3.0 and beyond.
Therefore, for those willing to take a calculated risk with considerable upside potential, Cardano is a strong candidate for the best cryptocurrency to acquire now.
Conversely, for more cautious crypto investors seeking exposure to the sector, Bitcoin (BTC) remains a solid option.
Its inevitable progression towards global adoption continues to accelerate as institutional acceptance grows and nations, including the United States, explore the possibility of establishing BTC reserves.
The post Cardano Recovers Above $0.70 – ADA Price Explosion Incoming? appeared first on Cryptonews.
