FOMC Signals ADA Price Recovery After Downturn: Cardano Price Outlook (December 2025)

In accordance with Bijiie, Cardano (ADA) price has regained attention following the latest FOMC decision. After enduring a volatile macroeconomic cycle, ADA is now attempting to stabilize. The Federal Reserve cut interest rates for the third consecutive time by 25 basis points, initially triggering a surge in risk assets, but the reaction quickly faded. The key question now is whether December will bring a meaningful ADA price increase or further volatility as the market digests the new policy direction. The FOMC meeting confirmed market expectations, with the Fed ending quantitative tightening and announcing $40 billion in new Treasury purchases over 30 days. Historically, major rate cuts have occurred during periods of financial stress, such as the 2000 dot-com bubble, the 2008 crisis, and the 2020 pandemic. While rate cuts are generally seen as positive for risk assets, market reactions are not always straightforward. ADA initially responded positively to the news but quickly reversed gains. Despite short-term volatility, Cardano's fundamentals remain strong, with the Midnight privacy sidechain launched and expansion projects like Leios and Hydra progressing. The technical outlook shows a 4-hour chart rebound of about 13% after the FOMC decision, though it failed to break above the 200-day EMA. The RSI shows bullish divergence, and the MACD has turned positive for the first time since October 10. A key resistance level at $0.64 remains to be tested.