Cardano’s Social Sentiment Sees Strong Growth
Positive comments about the crypto market are now overwhelmingly outweighing negative ones—by a ratio of more than 3.5 to 1—among Cardano (ADA) enthusiasts on social media. Data from Santiment marks this as the most bullish sentiment the ADA cryptocurrency has had in the past four months.
The primary reason behind this surge is Cardano’s increasing use of smart contracts, especially those of government services, which has drawn much attention from the community. Such an increase in positive sentiment aligns with previous price rallies, like the one from October 30 to November 6.
Cardano’s Social Sentiment
While this sentiment is certainly not a one-off, it partly lines up with an increase in social media mentions and conversations around ADA. As the above chart from Santiment shows the correlation between the rise in social sentiment and the token’s price movements, its price surge was preceded by positive spikes.
Cardano’s Price Action: Is a Bullish Breakout on the Horizon?
After a sharp rally in early March, Cardano’s price action has entered a consolidation phase. According to the four-hour chart’s analysis, the token reached a high of about $1.175 on March 3 before being rejected and retracing.
At press time, ADA’s price faces a crucial resistance zone between $0.776 and $0.755, with the Murrey Math Line pointing to the next resistance level at $0.781. On the other hand, since March 11, the token has been following an ascending trendline, and pullbacks have been supported by the $0.635-$0.684 range.
ADA/USD 4-Hour Chart
Should the cryptocurrency fail to sustain these support levels, the next key footing would be around $0.582, with further downside potential toward $0.537-$0.488. An absolute analysis of ADA’s pivot point walks on the neutral side, showing its Relative Strength Index (RSI) for the 14-period at 53.11.
Breaking and pushing past the 60 level on the RSI could indicate ADA may be ready for a breakout, as it indicates stronger bullish momentum. This marks a critical level for traders and analysts to watch.
Federal Reserve’s Rate Decisions: Potential Tailwinds for ADA’s Price Action
Recent actions of the Federal Reserve could provide favorable conditions for the price movement of Cardano. On March 19, Jerome Powell announced the Fed’s intention to keep interest rates as they are during the Federal Open Market Committee (FOMC) meeting.
Moreover, the Fed estimated two more rate cuts in 2025, mainly due to continued inflation concerns and slower economic growth. Per the report, the U.S. economic growth forecast for 2025 was revised down to 1.7% from 2.1%.
This combination of steady interest rates and antidotal rate cuts in the future creates an environment whereby positive investor sentiment remains. Such a decision could also help elevate the confidence in the crypto market, of which ADA is also a part.
