Cardano price suddenly looks not that dire after all 25% gains possible by New Year
|- Cardano price jumped over 1.5% on Thursday as only late in the US session a tailwind emerged that lifted cryptocurrencies higher.
- ADA could be popping higher toward $0.324 and possibly breaking out of the range trade.
- Expect to see a volatile US session on Friday after PPI, with data expected to confirm diminishing inflation.
Cardano (ADA) price is advancing in the wake of important US data coming out throughout the US trading session. First up, at the start of the US session on Friday is the Producer Price Index numbers (PPI), which analysts forecast to be tilting to the downside. This would mean that overall inflation is cooling down further.
Later in the US session, the University of Michigan comes out with expectations and forecast inflation numbers. Confirming a drop similar to PPI could trigger a massive wave of tailwinds and breakouts in equities and cryptocurrencies.
ADA traders see it is time to face their fears
Cardano price has been trading against the low of 2021 for most of November, as the whole of 2022 got dictated by two main elements: inflation and the crypto winter. Today more signs will be seen regarding the first and biggest issue for 2022: inflation. The market tentatively expects that inflation will be shown decreasing further. With the PPI numbers today and US inflation figures next Tuesday, the roadmap is being made for the Fed and its statement on Wednesday, where the base case scenario is that more hikes will come but at a much less and more digestible pace and size.
Thus, ADA will see many bulls gearing up to be part of this rally as this would mean that finally some bearish pressures are fading. Expect first to see a test at $0.324 before breaking out and popping up toward the monthly pivot at $0.35, which falls in line with the 55-day Simple Moving Average (SMA). That level to get tested by the end of this week would be ideal for advancing into the coming weeks. Then look for $0.40 as the cherry on the cake by Christmas, printing a 25% ADA price increase.
ADA/USD daily chart
The risk with data points is that numbers are always up for interpretation. It depends whether the new number comes out higher than expectations or if the revision from last month triggers a drop and comes out lower than the current number. This kind of number could trigger a knee-jerk reaction and accelerate the downside toward $0.300 for a test or even break its low for 2022 at $0.297. The road would be open for another leg lower toward $0.280 in that case.
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