- Cardano price action could be a surprise to the upside over the weekend.
- ADA Price is set to close out the trading week with a gain.
- Expect to see this continue over the weekend as a shift in sentiment occurred this week.
Cardano (ADA) price could be set to close out the week with a gain on the workday trading week and over the weekend. A seismic shift happened this week, with investors seeing a few central banks signalling that the rate hike cycle is ending. This would mean less stress and tight conditions for trading, opening up room for some upside potential with ADA price set to pop above $0.55 and test a significant cap.
ADA price set to test the cap
Cardano price is again surfing on the waves of global markets after its dislocation on Thursday, where global markets were on the back foot because of the commodity correction, but cryptocurrencies are looking to be immune to that. As it currently stands, cryptocurrencies are set to close out the week with a gain, at least for what the typical trading week is considered to end on Friday evening with the US closing bell. Should ADA price be able to close above $0.50, things could look bright for the weekend.
ADA price could see this relief rally continue into the weekend, and traders gear up for a test against the 55-day simple Moving Average (SMA) at $0.570. That would at least be a pleasant surprise as this was perceived impossible, considering last week's price action. With this global market sentiment turnaround, traders should enjoy this rally higher but keep tight stops and stick to their projected profit levels as tail risks remain significant and unresolved.
ADA/USD daily chart
As fragile as this recovery, so is still the situation on inflation and growth. With still high inflation, families are still seeing less disposable income so that less cash can be invested into cryptocurrencies, and to make matters even worse, Powell confirmed to the Senate finance committee that the FED is willing to put the US in recession if that would halt inflation. A recession would drag on risk assets and kick cryptocurrencies back into the penalty box, with ADA price again dropping back to $0.40.
