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The larger cryptocurrency market fell sharply on Friday, owing to a mix of macroeconomic factors and investor sentiment. The sell-off resulted in $1.42 billion in liquidations across various assets.
The market soon regained footing, with several cryptocurrencies showing signs of recovery over the weekend. Cardano also rebounded, with ADA’s price rising by 15% and briefly hitting the $1 mark.
The Fed’s preferred inflation gauge came in lower than expected on Friday, which seemed to take some of the sting out of the market’s disappointment with the Fed’s interest rate announcement on Wednesday.
The personal consumption expenditures price index (PCE), the Fed’s preferred inflation indicator, increased by only 0.1% in October and a 2.4% annual rate, both below expectations.
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On Wednesday, the Fed dropped its benchmark interest rate by another quarter percentage point to a target range of 4.25%-4.5%, the lowest level in two years. Chair Jerome Powell and policymakers, on the other hand, reduced their expected path in 2025, now projecting only two reductions rather than four as previously expected.
ADA price action
After four consecutive days of drop, ADA’s price sharply rebounded to lows of $0.763 in Friday’s trading session. The rebound reached highs of exactly $1 in Saturday’s trading session before slightly retreating. At the time of writing, ADA was up 14.05% in the last 24 hours to $0.9579.
As Cardano battles to gain a hold on the $1 mark, the market is closely monitoring its performance. Breaking through this psychological barrier could pave the way for further gains, potentially reaching $1.34 and ultimately $2. On the other hand, the daily MA 50 at $0.877 might provide support ahead of the $0.76 low.
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According to a recent Messari Q3 report, “State of Cardano Q3 2024,” Cardano’s TVL in USD increased 13.3% QoQ to $231.6 million. The stablecoin market cap increased 5.4% QoQ to $20.7 million, while USDM continues to rise after its March launch, gaining 148.5% QoQ to $7.9 million. Meanwhile, revenue in USD fell 31.2% QoQ to $0.51 million. This was impacted by Cardano’s 15.9% quarterly decline in average daily transactions, which fell to 43,200.