Cardano (ADA) showed technical signals of a possible rally. Analysts said the token could advance nearly 30% as patterns aligned with potential macro and regulatory catalysts.
Was the combination of chart signals and policy shifts enough to sustain a breakout?
Cardano Price Showed Bullish Reversal Signals
Analysts said the Cardano price stayed above the 100-day Exponential Moving Average (EMA). The EMA often acted as a support level during past recoveries.
The token also reacted near levels identified by the Murrey Math Line tool. The tool marked support and resistance points where price reversals often occurred.
Chart patterns reinforced the outlook. Analysts noted a bullish flag, which followed a sharp rise with a short pullback. The flag pattern often resolved upward.
They also identified an inverse head-and-shoulders formation. This setup is viewed as a reversal that signals potential long-term strength.
If confirmed, analysts said the Cardano price could move toward around $1.07, roughly 30% above current levels.
At the same time, analysts warned that a decline below $0.68 would cancel the bullish scenario. That level aligned with a pivot on the Murrey Math framework.
Cardano Price and Weak US Jobs Data
The macro backdrop also shaped expectations. US non-farm payrolls for August showed weaker conditions.
The economy added about 22,000 jobs compared with 79,000 in July. The unemployment rate increased from 4.2% to 4.3%.
Economists said weaker labor data often pushed the Federal Reserve to cut interest rates. Lower rates supported risk assets, including tokens.
Mohamed El-Erian, a leading economist, said the data pointed to a 25-basis-point cut at the Fed’s meeting in less than two weeks. He added that a 50-point cut remained a possibility.
At the time of writing, the data created expectations that liquidity could expand, supporting assets like ADA.
Regulatory Decisions Could Shape Outlook Ahead
The regulatory landscape offered another catalyst. The SEC faced an October deadline to respond to Grayscale’s request for a spot ADA exchange-traded fund (ETF).
Analysts said approval could expand access for institutional investors. An ETF could allow investors to gain exposure to ADA without holding tokens directly.
Analysts said such products often increased inflows by reducing custody risks. Expectations around ETF approval added to the bullish case.
While the SEC had approved other spot ETFs earlier in 2025, the outcome for ADA remained uncertain.
Looking Forward to Next Price Test
Cardano price action combined technical and fundamental drivers at press time. Analysts pointed to strong support above the 100-day EMA and bullish chart setups.
Macroeconomic factors, including potential rate cuts, and a pending SEC decision on a Grayscale ETF created further upside risk.
Whether ADA reached around $1.07 or failed near $0.68 would depend on both technical confirmation and policy outcomes. Traders monitored both as the next test for the token’s trend.