Cardano Price Analysis: 18% Jump Likely, Is Now a Good Time to Buy?

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Joel Frank

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Joel Frank

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Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

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April 10, 2025 22:53 EDT

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The Cardano (ADA) price remains in a downtrend during early Friday trade, despite its strong bounce from earlier weekly lows, as crypto traders digest recent trade war developments and eye a complicated macro landscape.

ADA was last around $0.62, up over 20% from earlier weekly lows, but the major alt-coin remains stuck in a downtrend versus its late March highs, and below all of its major averages, suggesting the bears remain in control for now.

Short-term chart analysis thus suggests that now might be a good time to add to shorts, with a retest of lows possible in the sessions ahead.

That said, risks of a short-term push higher for the Cardano price are growing. US President Donald Trump delayed tariffs against many nations by 90 days this week, which came as a major relief to the market.

That said, this delay did not include China, and both countries have continued to escalate economic measures against one another throughout the week.

However, Trump’s decision to delay tariffs on many nations shows he is willing to negotiate and limit the immediate damage to global trade, so trade war fears are likely to have peaked for now.

With the Cardano price having reached its most oversold levels in over a month earlier this week, risks are tilted towards Monday’s price bottom around $0.50, forming a local low.

Positive US CPI data, which eased US inflation concerns, adds to near-term upside risks.

Assuming the near-term downtrend does snap, the Cardano price could soon jump back to test its 200DMA at $0.74.

That would mark an 18% rally for the crypto in the coming days. So does that mean that now is a good time to load up on ADA?

Is Now a Good Time to Buy ADA?

Whilst risks are tilted towards a near-term recovery with the market having recently become oversold, we are not yet out of the woods regarding macro concerns.

It hasn’t even been three months yet since US President Trump’s arrival in the White House, but his policies so far (despite having proven popular) have increased uncertainty in the economy.

Trade war fears are hurting business sentiment and investment, whilst amping up inflation concerns.

DOGE austerity, meanwhile, is reducing the deficit and thus fiscal stimulus in the economy, as well as increasing uncertainty in the overall jobs market.

The US economy may well fall into recession later this year, or even already be in one. And that could mean the lows aren’t yet in for risk assets like stocks and crypto.

So, piling into ADA right now on an assumption that “the lows are in” and “its all up from here” is a very risky bet to make.

However, for investors with a longer-term horizon, now is a great time to buy. Yes, the Trump administration is currently pursuing unfavorable policies for the near-term economic outlook.

But things will presumably get better eventually. And all the while, the pro-crypto Trump administration is setting the foundations for a boom in the crypto industry in the years ahead.

Just on Thursday, Trump signed into law a bill overturning the IRS’s controversial “DeFi broker rule”, paving the way for accelerated DeFi growth in the years ahead.

That could help the growth of Cardano, an up-and-coming DeFi chain – Co-founder Charles Hoskinson wants Cardano to become the main DeFi side chain to Bitcoin.

With Hoskinson predicting a major rebound for cryptos later this year, with Bitcoin potentially to rally all the way up to $250,000, the longer-term outlook for the Cardano price remains strong.

Investors with a strong appetite to HODL would do well to continue accumulating ADA on dips.