Cardano (ADA) is following the market-wide resurgence, reclaiming the $0.1763 price level once again. ADA’s price has rallied by 4.2% in the last 24 hours and 9.3% in the last week, according to CoinGecko data. Let’s discuss what’s pushing Cardano’s (ADA) price rally and if the upswing can sustain itself.

Why Is Cardano’s Price Rallying Today?

Cardano’s (ADA) latest upswing follows Bitcoin (BTC) reclaiming the $65,000 price level. The cryptocurrency market, in general, is seeing increased inflows today. The rally is likely due to lower than expected inflation numbers for June 2026. CPI (Consumer Price Index) figures came in at 3.5%, lower than May’s 4.2%. Lower inflation numbers may have reignited hopes for lower interest rates by the Federal Reserve.

Also Read: Russia to Finalize Bill Establishing a Legal Framework for Crypto

Cardano (ADA) has struggled to gain steam over the last several years. The popular cryptocurrency is currently down by more than 94% from its all-time high of $3.09, which it attained in September 2021. The Cardano community recently voted to cancel its annual summit, choosing to not spend the amount needed to host the event. The move led to a dip in investor sentiment.

Can The Rally Continue?

The US may pass the CLARITY Act into law very soon. There has been a lot of talk about the addition of ethics language to prevent elected officials from making profits in the cryptocurrency market. If the law is passed it could lead to higher investor sentiment. Cardano could rally if the legislation is passed.

While Cardano’s ongoing price rally is commendable, it is unclear if the rally can sustain itself. Inflation numbers may have fallen for June, but there is a chance that the July numbers will be higher. Oil prices have surged and it may lead to a spike in CPI figures next month. Higher inflation numbers may lead to the Federal Reserve raising interest rates. Cardano’s price may suffer under such circumstances.

Additionally, we are still in a bear market. Macro uncertainties and geopolitical tensions may present further challenges for Cardano and the larger cryptocurrency market.