Cardano’s Low Retail Interest Signals Potential Bullish Breakout After Inflation Drop

The recent decrease in US inflation has positively impacted the market, boosting investor confidence and leading to increased buying in major altcoins.

Bitcoin experienced a brief surge above $97,000 before stabilizing around $96,000.
Arthur Hayes, former BitMEX CEO, suggests a potential full Bitcoin bull cycle could return by 2026 following a liquidity crunch in 2025.
December's US headline inflation was at 2.7%, aligning with expectations, while core inflation stood slightly lower at 2.6%.
The Federal Reserve is expected to maintain rates between 3.50% and 3.75%, with most risks already factored into the market.

Cardano (ADA) Market Insights

Despite ADA's price increase, retail interest remains low; futures open interest has decreased significantly from previous highs.
This low leverage environment could indicate potential for upside if demand increases.
ADA is trading within a long-term descending channel, with a key support zone between $0.35 and $0.37.

Cardano Price Chart

Price Analysis for Cardano

Immediate resistance for ADA is near $0.45, with a major supply zone between $1.20 and $1.30.
A breakout above this range could signify a trend reversal towards a $2.50 target.
If ADA falls below $0.38, the $0.35 support level becomes crucial; breaking it may lead to further declines.

New Developments in Bitcoin Technology

A new project, Bitcoin Hyper ($HYPER), aims to leverage Solana's technology to enhance Bitcoin's utility, enabling faster and scalable Layer-2 solutions for DeFi, NFTs, and other applications.