• 28 May, 2024
Market News

Cardano Surges 0.50% Riding Bitcoin’s Wave in Dynamic Crypto Markets

In the dynamic realm of cryptocurrency markets, Cardano (ADA) has recently experienced an impressive 0.50% surge in its price over the past week. This upward momentum is attributed to the positive trend observed in Bitcoin (BTC), the leading cryptocurrency. 

Cardano has closely followed this trend, demonstrating a correlation coefficient of 0.89 over the last three months. As ADA sustains a value above $0.61, on-chain metrics and key indicators suggest a bullish outlook for this altcoin.

One significant metric shedding light on Cardano’s relevance is the Total Value of assets Locked (TVL) in its blockchain. As of Tuesday, the TVL surpassed a noteworthy $417 million, reflecting the demand and significance of Cardano within the broader ecosystem. Notably, the TVL reached a peak of $444 million on December 14, briefly retracting to $425 million thereafter.

Cardano TVL. Source: DeFiLlama

Analyzing the Network Realized Profit/Loss (NPL) metric, which gauges whether Cardano transactions on a given day resulted in profit or losses, it becomes evident that ADA holders engaged in profit-taking between December 4 and 19. Large wallet addresses, particularly those transacting $100,000 or more, are capitalizing on gains in the asset.

Presently, ADA is trading at $0.594884 , residing within a crucial demand zone spanning from $0.6016 to $0.8421. Below this zone, support is anticipated between $0.5450 and $0.6016.

Source: Coingecko

Looking ahead, if Cardano manages to sustain its current gains and continues its upward trajectory, breaking through the resistance at $0.8421 could be a significant milestone. This achievement would pave the way for a potential climb towards the psychological barrier of $1.

The ADA/USDT 1-day chart indicates a potential climb towards the Fair Value Gap, positioned between $0.7021 and $0.7258. Breaking the resistance at the 38.2% Fibonacci retracement level, situated at $0.6214, would clear a relatively obstacle-free path towards $0.70.

Nevertheless, the optimistic outlook for Cardano faces a potential setback if there is a daily candlestick closure below the 1 week  Exponential Moving Average (EMA) positioned at $0.491. Such a scenario could undermine the bullish thesis for ADA. In the event of a decline, the ADA price might discover support at both $0.491 and the 23.6% Fibonacci level, situated at $0.4745.

 ADA/USDT 4-hour price chart, Source: TradingView

Cardano’s recent performance and on-chain metrics present a promising outlook for the altcoin, suggesting that it may continue its upward trajectory in the near future. Investors and enthusiasts will be closely watching as ADA charts its course in the ever-evolving cryptocurrency landscape.

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