Of the Cardano (ADA)token hit a two-year low of $0.239 as recently as December 30, but has since experienced a sustained rally that has catapulted the price to $0.264 at press time. Within the last 24 hours, ADA has recorded a price increase of around 5% with a trading volume of around 250 million US dollars.
However, looking at the 1-day chart shows that Cardano is far from over the mountain. The ADA price has been in a falling trend channel since mid-August 2022. Since the beginning of December alone, the ADA token is down 25%.
While the 50-day simple moving average (SMA) has an initial target at $0.291, ADA needs another push above $0.33 to break out of the bearish trend. Therefore, today’s move could mark burgeoning momentum for the bulls. The MACD indicator showed a bullish crossover a few days ago, suggesting that buying pressure is building.
Meanwhile, the Relative Strength index (RSI) currently at 46, which is in neutral territory after spending much of the second half of December in oversold territory.
ADA/USD price, 1 day chart
Looking at the 4-hour chart, Cardano has seen a major rejection at the key resistance zone of $0.266 – $0.271. For ADA investors, the mark could be the first big step to reach the $0.28 level. After that would be the most important Resistance wait in the $0.291 to $0.30 range. Only if Cardano manages a breakout could attention turn to the higher timeframe and deal a final blow to the bearish trend.
Cardano/USD price 4 hour chart
Cardano whales and DeFiactivity could drive the price
Some bullishness in ADA price may have been brought about by the growth of the Cardano DeFi ecosystem. After bottoming out at $48.95 million on Jan. 1, Total Value Locked (TVL) is back up to $52.53 million today, according to data from DeFiLlama.
Some of the leading decentralized finance protocols on the Cardano network have seen a surge in activity. Within the top 7 decentralized applications (apps), all have seen a TVL increase of at least 3.5% in the last 24 hours. At +21.5%, Lending Pond leads the growth over this period, but also over the last month (+50%).
Cardano defi dapps TVL, according to DeFiLlama
Another reason for the price increase could be larger ADA investors. WhaleStats data shows that even large BSC holders have a keen interest in buying Cardano (ADA). ADA purchases are among the top 10 of the 4,000 largest BSC whales in the last 24 hours. Additionally, the largest BSC whales currently hold 19.9 million ADA, which is worth $5.19 million and accounts for 0.68% of the total supply.
JUST IN: $ADA @CardanoStiftung now in the top 10 tokens bought among the 4000 biggest #BSC whales in the last 24 hours 🐳
Check out the top 100 whales here:
(and hodl $BBW to see data for the top 4000!)#ADA #whalestats #babywhale #BBW pic.twitter.com/3GdW9PeU5T
— WhaleStats – The Top 1000 BSC Rich List (@WhaleStatsBSC) January 4, 2023
Featured image from IOHK blog, charts from TradingView.com
Source: Crypto News Deutsch