Cardano’s (ADA) price has experienced a notable rebound, rising 12.5% from its January 28 low of $0.857. At the time of writing, ADA is trading at $0.956, marking a 7% increase over the past 24 hours. This rally aligns with broader gains in the cryptocurrency market and renewed optimism surrounding Cardano’s developments.

Broader Market Rally Fuels ADA Gains

The rise in ADA’s price comes amidst a market-wide recovery, led by Bitcoin (BTC) reclaiming the $102,000 level after dipping to $97,750 on January 27. BTC is currently up 3.3% over the past day, trading at $102,733. Ethereum (ETH) has also surged by 6.8%, approaching $3,200, while other major cryptocurrencies like Binance Coin (BNB), XRP, and Dogecoin (DOGE) have posted significant gains.

The total cryptocurrency market capitalisation has increased by 3.87% over the past 24 hours, reaching $3.51 trillion as of January 28. Market participants are keeping a close eye on the Federal Reserve’s upcoming interest rate decision, with expectations that the Federal Open Market Committee (FOMC) will maintain the federal funds rate at its current range of 4.25% to 4.5%.

Cardano’s Plomin Upgrade Gains Momentum

Cardano’s strong performance is also driven by the upcoming Plomin hard fork, approved by the Cardano Foundation on January 27. The upgrade, set to take place on January 29 at 21:45 UTC, aims to transform Cardano into a fully decentralised governance model. ADA holders will be able to vote directly or delegate their voting rights to representatives.

The Plomin upgrade has received overwhelming support, with 86% of required votes cast. Major entities, including Input Output Global (IOG), EMURGO, and the Cardano Japan Council, have backed the proposal. Binance, the world’s largest cryptocurrency exchange, has also announced its support for the upgrade.

The Cardano Foundation stated that the governance action complies with all procedural requirements and enables the adoption of new governance mechanisms and smart contract functionalities. This strong backing signals confidence in Cardano’s future and has contributed to the positive sentiment surrounding ADA.

Technical Indicators Point to Further Gains

ADA’s price movement is forming a symmetrical triangle, a technical pattern that often precedes significant breakouts. If ADA can overcome key resistance levels, the pattern’s measured move suggests a potential price target of $1.90, representing a 96% increase from current levels.

In the short term, the immediate resistance is around $0.962, aligning with the 50-day Simple Moving Average (SMA). A breakout above this level, coupled with strong momentum and trading volume, could validate the symmetrical triangle pattern.

To achieve the long-term target of $1.90, ADA would also need to surpass the descending trendline resistance at $1.13.

Outlook Remains Bullish

With the broader cryptocurrency market recovering and the Plomin upgrade set to enhance Cardano’s ecosystem, ADA’s outlook remains positive. Investors are closely monitoring the Federal Reserve’s January 29 decision and the successful implementation of Cardano’s governance transformation, both of which could further influence ADA’s trajectory.

As the market sentiment improves, Cardano is poised to capitalise on its technological advancements and growing investor confidence.