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Highlights
- Cardano price could be ripe for a bullish breakout in the near term.
- Mohamed El-Erian has called for the Fed to cut interest rates.
- It will also benefit as odds of Cardano ETF approval rise.
Cardano price is eying a 30% surge in the coming weeks after forming a highly bullish chart pattern. ADA may also rebound after a top economist called for the Federal Reserve to cut interest rates after the weak jobs numbers.
Cardano Price Flashes Bullish Patterns
Technical analysis points to an eventual Cardano price rebound as it formed highly bullish chart patterns. It remains much higher than the 100-day Exponential Moving Average, which has historically provided it with robust support.
The coin also bounced above the major support and resistance levels of the Murrey Math Line tool, where rebounds normally happen.
Meanwhile, the recent pullback was part of the formation of a bullish flag pattern. This pattern is made up of a vertical line and a falling channel that resembles a hoisted flag.
ADA price has also formed an inverse head-and-shoulders pattern, which also leads to more gains in the long term. Therefore, the coin will likely lead to a strong bullish breakout, potentially to the extreme overshoot level of $1.074, which is about 30% above the current level.
The long-term bullish ADA price forecast will be invalidated when it drops below the strong, pivot, reverse point of the Murrey Math Lines at $0.684.
Federal Reserve Cuts and ADA ETF Approval
There are two main potential catalysts for the Cardano price in the coming week. The first one is the new non-farm payrolls data, which came out on Friday.
This report showed that the economy added just 22,000 jobs in August, much lower than the 79k it added in July. Also, the unemployment rate rose from 4.2% to 4.3%, meaning that the economy is not doing well.
Bad economic numbers are usually good for risky assets like cryptocurrencies and stocks because they push the Federal Reserve to cut interest rates. In a statement, Mohamed El Erian a top economist said:
“This data guarantees a 25 basis point Federal Reserve interest rate cut in 12 days time. The report also reinforces the view that the Fed should have cut rates sooner, particularly last July. It may even prompt some discussions about the possibility of a more aggressive 50 bps cut at the upcoming meeting.”
The other major catalyst for the Cardano price is that the SEC will likely pass the spot ADA ETF when the deadline for the one by Grayscale comes in October.
To sum it up, Cardano has bullish technicals and fundamentals that may push it higher in the coming weeks.
Frequently Asked Questions (FAQs)
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