Cardano’s ADA Token Rises 2% Amid Broader Crypto Market Recovery

Cardano’s ADA token rose 2% to $0.87 within 24 hours, reflecting a broader recovery in the crypto market. The CoinDesk 20 Index gained 2.8% during the same timeframe.

Key developments influencing this movement include:

Increased confidence in a potential September interest rate cut by the Federal Reserve.
The U.S. SEC's extension of its review of Grayscale’s proposed spot Cardano ETF until late October 2025.

ADA traded within a narrow range of $0.04, hitting a low of $0.83 and a high of $0.88. Trading volume surged, more than doubling the 24-hour average of 39.3 million. After a spike from $0.84 to $0.88, ADA settled around $0.86, indicating possible institutional accumulation.

The market showed volatility after significant profit-taking on Monday, prompted by Fed Chair Jerome Powell’s comments at Jackson Hole, which raised expectations for lower rates. By Tuesday, this pullback was viewed as a buying opportunity, leading to a rebound in altcoins.

Lower interest rates generally benefit the crypto sector, encouraging investments in higher-yielding assets compared to government debt. This environment can lead to "altcoin season," where smaller tokens outperform Bitcoin.

The SEC's delay regarding the Cardano ETF was anticipated, as regulatory decisions on spot crypto ETFs have slowed. Despite temporary uncertainty, ADA maintained resilience, with traders focusing on overall market momentum and capital rotation towards altcoins.