Cardano Defies Market Correction with 20% Rally as Bitcoin and Ethereum Struggle

The cryptocurrency market has faced heavy volatility in recent days, with Bitcoin (BTC) and Ethereum (ETH) retreating after their recent highs.

Bitcoin briefly slipped under $115,000 following its peak at $124,128 on August 14, while Ethereum fell from $4,700 to around $4,200. However, Cardano (ADA) has taken a different path, rallying more than 20% over the past week and showing resilience despite the broader market downturn.

According to CoinGecko data, Cardano has gained 1.4% on the daily charts, 19.6% weekly, 24.2% over two weeks, and 177.9% since August 2024. This strong performance has positioned ADA as one of the few major altcoins defying bearish pressure in the market.

Why Cardano Is Rallying While Others Dip

Analysts point to a combination of technical and macroeconomic factors fueling Cardano’s momentum. The formation of a golden cross, a bullish chart pattern, has sparked investor optimism. Prominent analyst Lark Davis highlighted that the last time ADA formed this pattern, the token surged over 230%.

Additionally, speculation about a potential U.S. Federal Reserve interest rate cut in September is boosting sentiment. Major financial institutions, including Goldman Sachs, Citigroup, and Wells Fargo, expect rate reductions totaling 75 basis points by year’s end.

Lower rates typically push investors toward riskier assets like cryptocurrencies, which could further strengthen ADA’s rally.

Cardano Price at a Critical Juncture

Currently trading near $0.927, Cardano faces a pivotal moment. Market analysts stress that breaking above the $0.98 resistance could unlock significant upside momentum, potentially attracting new buyers. On the flip side, failure to hold support at $0.89 could trigger liquidations and drive ADA back toward $0.85.

Long-term projections for Cardano remain ambitious. Some traders, including Crypto Patel, argue that ADA could eventually target $10 if it breaks through key resistance levels at $1.10 and $2.90. However, such a move would require massive adoption, strong liquidity inflows, and renewed market-wide optimism.

For now, ADA investors are watching closely as the altcoin consolidates in a tight range. The next few trading sessions may determine whether Cardano continues its bullish trajectory or falls back in line with the broader market correction.