Cardano's price action shows signs of bullish recovery as Charles Hoskinson's CNBC comments stir fresh optimism across the crypto market.
The price of Cardano (ADA) has risen by 4% on Thursday. The move comes as the founder of the blockchain project, Charles Hoskinson, made bullish predictions for Bitcoin and the broader crypto market in an interview with CNBC.
During his appearance on the U.S. business channel, Hoskinson also touched upon the catalysts that could drive a strong rally in the crypto space.
This year, the House of Representatives passed a bill that would impose a new regulatory framework for stablecoins and put in place a system for registering crypto exchanges and platforms with the Securities and Exchange Commission (SEC). The Senate is working on its own version of the bill, and the two bills will be reconciled before being sent to President Joe Biden to sign into law.
The Cardano founder said that the next big move in the market depends on macro shifts and regulatory progress.
"The markets will stabilize, the Fed will cut rates, and a wall of capital will pour into crypto. That’s what people are preparing for. Bitcoin could easily be over $250,000 by the end of this year or next year."
This, coupled with institutional interest from major tech players - dubbed the "Magnificent 7" (Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla) - could lead to a speculative boom between August and September.
According to Hoskinson, the resulting wave of capital will flow heavily into altcoins, such as ADA. Should Bitcoin reach the $250,000 mark - a milestone that seems distant at present, given that the flagship coin is currently trading around $70,000 - Cardano's historical price correlations suggest that ADA price could breach $2 in the next cycle.
However, in the short term, Cardano is facing technical constraints. A break above $0.70 could open a move toward $0.80, with $1.00 acting as the next major resistance. Failure to close above resistance may lead to a retest of the $0.63-$0.65 support zone.
If Hoskinson's $250,000 Bitcoin price prediction materializes in 2025, ADA could mirror the rally. But in terms of near-term price action, Cardano is unlikely to advance further without a clear break above $0.70.
