ADA Price Prediction: US Inflation Shock Puts Cardano $0.23 Support at Risk

Cardano (ADA) is testing a support level around $0.23 as rising US inflation fuels concerns that interest rates will remain elevated, increasing pressure on cryptocurrencies.

TradingView analyst Th3arock warned on X that September’s inflation data will influence ADA’s next move. The analyst identified $0.225–$0.23 as a critical price zone for preventing further declines.

US inflation rose to 3.7%, while core inflation reached 2.6%. The figures have intensified concerns that the Federal Reserve will keep interest rates high for longer or raise them again.

Higher interest rates strengthen the US dollar and reduce investors’ appetite for risky assets such as cryptocurrencies. These conditions increase selling pressure on ADA.

Cardano Price Tests Critical $0.23 Support

Cardano (ADA) is trading at $0.2315, up 0.61% for the day. The price remains near the critical $0.23 support level following a pullback from recent highs.

The chart shows ADA moving within a rising channel after falling to around $0.13. The channel’s upper boundary has repeatedly capped price advances, while its lower boundary has supported the recovery.

ADA recently climbed to $0.27–$0.28 before retreating toward the channel’s lower boundary. The $0.23 level now represents a decisive threshold: holding above it preserves the recovery structure, while a breakdown signals further weakness.

Key Data Points

• Immediate support: $0.225–$0.23, where horizontal support meets the rising channel’s lower boundary.
• Nearby resistance: $0.25–$0.28, the region ADA faces as buyers attempt to regain control.
• Downside target: $0.20 if ADA breaks below support and fails to reclaim the level.
• Recent chart low: Around $0.14, where the rising channel began forming.

Bullish Scenario: ADA Targets $0.28

Th3arock’s bullish scenario rests on ADA holding the $0.225–$0.23 support zone and remaining within the rising channel.

If buyers defend this area, ADA is positioned for a recovery toward nearby resistance. A move above $0.25 would strengthen bullish momentum and pave the way for another test of the $0.27–$0.28 region.

A sustained move above resistance would reinforce the recovery structure and signal renewed buying interest.

Bearish Scenario: Cardano Faces a Drop Toward $0.20

The outlook turns bearish if ADA records a confirmed daily close below the $0.225–$0.23 support zone.

According to the analyst’s technical outlook, a failed attempt to reclaim this area after a breakdown would invalidate the current rising-channel structure. That would put $0.20 in focus as the next downside target.

Macroeconomic conditions add to the pressure as persistent inflation, rising Treasury yields, and a stronger US dollar weigh on risk appetite. These conditions encourage traders to reduce exposure to riskier assets, including cryptocurrencies.

Inflation and Cardano Network Activity Remain in Focus

Beyond the chart, Th3arock noted that Cardano has recently recorded strong transaction activity. However, reports of large-holder selling and declining active addresses have raised concerns about demand strength and sustainability.

High network activity does not automatically translate into immediate price gains. ADA’s recovery depends partly on stronger buying demand offsetting selling pressure.

The next developments in US inflation expectations, Treasury yields, and the dollar will shape market sentiment and influence ADA’s price direction.