Cardano (ADA) has had a rough few years. The asset hit $1.21 in December 2024, but then faced a massive price correction. ADA even briefly fell out of the top 20 cryptocurrencies by market cap. However, things seem to be turning around for ADA. CoinGecko data shows that ADA’s price has risen by 2.9% in the last 24 hours, 16.7% in the last week, 18% in the 14-day charts, and 17.4% over the previous month. Let’s discuss what’s behind Cardano’s (ADA) price rally, and if the project can re-enter the top 10 projects by market cap by the end of this year.
Can Cardano Continue Its Price Rally Till It Re-Enters The Top 10 Projects?
Cardano’s (ADA) current price rally is likely due to larger market-wide trends. Bitcoin (BTC) briefly climbed to the $87,000 price level earlier this month and other assets followed suit. The market-wide upswing was likely triggered by a dip in oil prices after Iran said proposed opening the Strait of Hormuz if its demands are met. Energy prices have been volatile due to the conflict and have directly impacted inflation figures.
While Cardano’s (ADA) latest price rally is welcome, it is unclear if the surge can sustain itself. The cryptocurrency market is still quite volatile and geopolitical and economic developments could lead to a steep price retracement. Let’s discuss what could happen next.
Can The Upswing Continue?
The Federal Reserve recently raised interest rates by 25 basis points to combat rising inflation. Higher rates often leads to less risky investments as borrowing becomes more difficult. Cardano (ADA) could see a price correction soon due to high interest rates.
Also Read: Why You Shouldn’t Miss The Next Cryptocurrency Bull Run
Nonetheless, the US and Iran may finalize a deal within the next seven days. A peace deal between the two nations could lead to oil prices dipping and becoming more stable. Such a move could lead to the Federal Reserve cutting interest rates, which could trigger a cryptocurrency market rally. Cardano (ADA) could potentially reclaim its position in the top 10 projects under such circumstances.