Cardano (ADA) Jumps 20% as It Tests Critical Support Level, Targets $2.48

Cardano’s native ADA token surged nearly 20% on Monday as it approached a critical support level of $0.72. According to market analysts, this rally could propel the altcoin to its next target of $2.48, thanks to Bitcoin’s bullish market performance and promising developments in U.S. cryptocurrency policies.

Past Trends, Upcoming Resistance

Examining ADA’s past trends, the $0.726 support level has acted as a strong foundation for the token’s upward movements. Back in May 2023, ADA faced resistance at this level, leading to a consolidation period before breaking through.

Now, with this increased momentum, the ninth-ranked token is set to reach the next major resistance level of $2.485. Technical indicators suggest that ADA is in a strong uptrend, evident in the RSI and MACD.

The Relative Strength Index is above 50, indicating bullish momentum. Meanwhile, the Moving Average Convergence Divergence shows a bullish crossover, confirming the upward trend.

Bitcoin, U.S. Policies Boosting ADA

This news aligns with the broader market optimism, where the narrative around Bitcoin (BTC) has been driving ADA’s upward surge. As the dominant crypto asset continues its bullish run, it will likely have a positive spillover effect on altcoins like ADA, further boosting its price.

Furthermore, recent developments in U.S. cryptocurrency policies are adding fuel to ADA’s rally. Rumors of Trump administration officials considering eliminating taxes on crypto gains have created a favorable environment for the market.

Cardano founder Charles Hoskinson also expressed his potential role in shaping crypto regulations. Despite not receiving any formal offers for roles on the U.S. crypto committee, Hoskinson highlighted his efforts in building relationships for the past three years.

“I’ll be involved; it’s just a question of how close I can be. I want to speak before the Senate in 2025.”

With the Biden administration’s current capital gains tax policy facing criticism, rumors that the Trump administration might eliminate taxes on crypto gains have created favorable conditions for ADA to benefit from the positive sentiment.

Traders and investors are keeping a close eye on ADA’s price action, especially at the $0.726 level. If ADA breaks above this threshold, it could climb toward $2.48, a level it last hit in 2021. As Cardano combines its technical strength with the favorable regulatory landscape, investors remain optimistic about its long-term growth in the crypto world.