Key Points
- Cardano Rebounded Nearly 3% from Recent Lows
- ADA faces strong resistance around $0.22
- The Fed's decision may determine the next attempt at a breakthrough
As traders positioned themselves ahead of the Federal Reserve's interest rate decision on October 28, Cardano rebounded by about 3% from its latest low. However, as of Tuesday, ADA was still near $0.205, far below the $0.22 level required to achieve a convincing recovery.
ADA rose from around $0.2005 on October 26 to a daily closing price of $0.2066, before then giving back some of that gain. This rebound occurred against the backdrop of a significant decline following its peak of nearly $0.28 at the beginning of October, which also raised doubts in the market about whether the buying momentum could be sustained.
Cardano Prices under pressure, $0.22 becomes a key resistance level
The recent rebound has not reversed its bearish technical structure.
Market data on October 26th showed that the direct resistance level was around $0.2085, followed by $0.2127. The broader weekly resistance level is closer to $0.223, which represents a greater obstacle for buyers.
This forms a sharp contrast with the rise of Cardano at the beginning of October. At that time, as the number of open futures contracts increased, ADA soared by about 11%, approaching $0.27.
Cryptography analyst Ali Martinez previously warned that if the daily closing price falls below $0.21, it could further retreat to $0.17.
This warning appeared after SuperTrend issued a bearish signal and whale activity weakened. However, the $0.17 target is still just a conditional scenario, not an inevitable price movement.
Earlier Cardano cumulative data indicates that major holders control over 25.6 billion ADA, suggesting that the long-term holding trend may differ from short-term price fluctuations.
The Fed's decision puts pressure on the recovery of ADA.
The Federal Reserve's two-day meeting will conclude on Wednesday, October 28th, with the policy statement expected to be released at 2 p.m. Eastern Time in the United States.
Traders will be watching the resolution and subsequent speeches to determine whether monetary policy will remain tight before December.
If the stance is more hawkish, it may suppress speculative assets by supporting bond yields and the US dollar. Conversely, if the guidance is more moderate, it could boost demand for cryptocurrencies again.
Cardano still faces questions at the ecological level.
The community is reviewing a financial proposal involving 22 million ADA, which is related to the tokenization of physical copper. This proposal still requires governance approval and will not automatically generate sustained market demand.
Institutional investment channels have also encountered setbacks, including Grayscale withdrawing its Cardano ETF registration application in August.
These developments provide additional context, but none of them can directly prove the cause of the latest round of decline for ADA.
Cardano Price Prediction: ADA Can it return to $0.22?
To achieve a bullish reversal, Cardano first needs to re-cross the resistance range of $0.2085 to $0.2127.
If it can continue to break through $0.22, $0.223, and $0.24 will come into view. However, buyers still need stronger trading momentum to overcome the broader downward trend.
On the downside, if it falls below $0.20, it could further decline to around $0.193; if selling accelerates, the $0.17 scenario mentioned by Martinez would become more relevant.
Cardano once experienced a strong rebound driven by whales, but past buying momentum does not guarantee a similar recovery. Similarly, the previous weakness in prices related to governance indicates that even if the ecosystem continues to develop, ADA may still remain highly volatile.
