The cryptocurrency Cardano hit $1.01, its highest level since March 2025, but the growth was short-lived as a sharp sell-off followed.
Sharp Rally of Cardano to $1
Cardano showed a sharp rise on Thursday, increasing by 16% and reaching $1.01. This was the first time it hit this level since March 2025, driven by a rare golden cross formation when the 50-day simple moving average surpassed the 200-day moving average in the daily chart. This event gave traders hope as a similar pattern was noted in November 2024.
Economic Data Impacting the Market
The rally lost momentum at the $1 mark as heavy selling pressure emerged. Economic data released, such as the producer price index which increased by 0.9% month-on-month and 3.3% year-on-year, reduced the likelihood of an imminent interest rate cut by the Federal Reserve. Additionally, the initial jobless claims reported 224,000, lower than forecast.
Current Situation of Cardano Market
At the time of publication, Cardano was down 4.33% to $0.923, although its weekly performance remained strong with a 21% increase. The movement towards the $1 level highlighted renewed bullish energy, but quick profit-taking and macroeconomic concerns shifted market sentiment.
Cardano remains in the spotlight following its significant rally, but prudent attention to current economic data and market fluctuations is critical for the cryptocurrency's future.
