Cardano (ADA) Rallies 8% as Market-Wide Crypto Surge Reclaims $0.38
Cardano (ADA) jumped about 8% in the past 24 hours amid a broad crypto market rally that pushed total market capitalization higher. The move followed the expiry of roughly $2.2 billion in Bitcoin and Ethereum options, which reduced short-term derivatives pressure and allowed spot markets to rally as trading desks reopened after the holidays. ADA reclaimed the key $0.38 zone, which now acts as short-term support. Immediate resistance sits at $0.40; a clean break above that level would likely confirm a bullish trend shift and open targets near $0.44–$0.46. Momentum indicators show strong buying pressure but point to short-term overbought conditions that could trigger consolidation. Key levels: support $0.38, resistance $0.40, downside support $0.34–$0.35. Traders should watch Bitcoin stability and wider market liquidity—holding $0.38 and a $0.40 breakout would favor further upside for ADA in the near term.
Bullish
The news is bullish for ADA. An 8% gain driven by a market-wide risk-on move and the expiry of ~$2.2bn in BTC/ETH options removes short-term selling pressure and increases the chance of continued upside. Reclaiming $0.38 shifts short-term structure in favour of buyers; a confirmed break above $0.40 would likely attract breakout traders and push ADA toward the $0.44–$0.46 zone. Historical parallels: past option expiries and year-start liquidity returns have produced similar broad altcoin rallies (e.g., previous post-expiry surges where large-cap alts followed BTC/ETH strength). However, momentum indicators near overbought raise the risk of short-term consolidation or pullbacks, so traders should manage risk—watch BTC for stability, monitor volume on any $0.40 breakout, and use $0.34–$0.35 as a key downside reference for stop placement. Overall, probability favours continuation while broader market liquidity holds.