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Friday, April 19, 2024

The Reasons Cardano (ADA) Exploded by 10% Today: Will the Rally Continue?

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  • Cardano (ADA) has shown significant growth, with its value experiencing notable increases.
  • Various factors contribute to ADA’s recent success, including its performance in certain key areas and metrics related to its blockchain platform.
  • According to different analysts, ADA’s surge could continue in the near future.

Cardano (ADA) on the Offensive Again

The cryptocurrency sector has experienced another green wave in the past 24 hours, with the global crypto market capitalization spiking to almost $1.8 trillion (per CoinGecko’s data). It is worth mentioning that the latest uptrend does not come as a result of Bitcoin’s surge but due to the impressive performance of some altcoins.

One of them is Cardano (ADA). Its price has soared by over 10% on a 24-hour basis, briefly climbing to a two-week high of $0.67. In addition, its market cap has spiked to almost $23 billion, making it the eighth-largest token in the entire industry.

ADA Price, Source: CoinGecko

IntoTheBlock data shows that almost 60% of ADA investors are currently sitting on paper profits, while less than 40% are underwater.

What Caused ADA’s Pump?

One possible factor could be the asset’s excellent performance in numerous fields. According to Santiment, Cardano has been the top network by development activity in the last 30 days. Polkadot (DOT), Kusama (KSM), and Avalanche (AVAX) are next in line.

Another reason might be the rising total value locked on Cardano. As revealed by DefiLlama, TVL on the blockchain platform has not dropped below $400 million since December 18. Additionally, trading volume has been well above $10 million since the beginning of the month. In comparison, that figure stood at less than $3 million at the end of November.

ADA TVL and Trading Volume, Source: DefiLlama

Is ADA’s Rally Sustainable?

It is safe to suggest that Cardano’s token has the chance to spike even higher in the near future, assuming those bullish factors remain in place. It could also benefit from a further potential rise in the cryptocurrency market.

Many experts have previously predicted that 2024 might be highly successful for the industry due to the upcoming Bitcoin halving (scheduled for next spring) and the possible approval of the first spot BTC ETF in the United States.

One analyst who recently laid out an optimistic ADA forecast is the X (Twitter) user Ali. The individual claimed that the coin’s price swings had formed a so-called “symmetrical triangle” on a 4-hour chart. The analyst concluded that this factor, combined with the potential resistance above the $0.63 level, could lead to a rally toward $0.78.

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