invezz.com
08 November 2024 08:16, UTC
Cardano price continued its strong surge after crossing an important resistance level, and as investors remained bullish on the coin. ADA has risen for four consecutive days and is hovering at its highest level since July. It has surged by 50% from its lowest level this year.
Cardano price surged as investors and analysts turned bullish on the coin. One of the most cited catalysts for the coin is the upcoming launch of BitcoinOS bridge, which will make it possible for users to move coins across its ecosystem and Bitcoin.
In an X post, an analyst known as Polkadot Leader said that the network’s struggling DeFi TVL would surge after this bridge is unveiled.
🚨BREAKING: #Cardano is done 💀 $ADA#Defi is going 40x TVL when it integrates into the #Bitcoin network This is just the beginning, speculators expect 400x Defi TVL 🤯 This is the beginning of the crypto domination that @IOHK_Charles was talking about Guess where the price…
Unlike the likes of Solana and Sui, Cardano’s DeFi TVL has been going downwards in the past few months and stands at $249 million. Base Blockchain, which was launched last year, has accumulated over $2 billion in assets.
Similarly, Decentralized Exchanges (DEX) in Cardano like MuesliSwap, Minswap, and SundaeSwap are not seeing any volume. That is likely because Cardano does not have a large meme coin ecosystem.
Analysts believe that it is only a matter of time before Cardano’s ecosystem starts to do well as developers launch meme coins in its platform.
Meanwhile, Road21Bsats, pointed to the fact that the coin had formed a falling wedge pattern, which often leads to a bullish breakout.
Other potential catalysts could push the Cardano price higher. From a macro perspective, two important things have converged this week.
First, the US elected Donald Trump as the next president, a move that will usher in a new era in the crypto industry. Analysts believe that the Securities and Exchange Commission (SEC) will no longer be as confrontational as was the case with Gary Gensler.
One thing that could happen is that the SEC may approve a potential ADA ETF in the coming months. Under Gensler, such an approval would likely not have happened because he believes that Cardano is a security.
Additionally, Trump’s era is seen positively by investors because he pledges to deregulate industries and cut taxes. The latter will likely lead to more US debt, which will then make Bitcoin more valuable. If this happens, altcoins like Cardano will also rally.
Second, the Federal Reserve delivered a relatively dovish interest rate decision on Thursday as it slashed rates by 0.25%. Analysts believe that the bank will keep slashing rates in the coming months since the labor market has worsened. Cryptocurrencies like Cardano and Bitcoin do well when rates are coming down.
The Fed is not the only central bank that is cutting rates. For example, the Bank of England (BoE) slashed rates by 0.25% in its meeting on Thursday. The ECB, Swiss National Bank, and Riksbank have also cut rates.
Cardano price also has positive technicals. On the daily chart, we see that the ADA price has been in a strong bullish trend in the past few days. Precisely, it has jumped in the past four consecutive days and is now attempting to cross above the key resistance level at $0.414, the highest swing on September 27.
Cardano price has moved above the 23.6% Fibonacci Retracement level. Most notably, it has also crossed the 200-day Exponential Moving Averages (EMA) and the descending trendline that connects the highest swing since June this year.
Therefore, the path of the least resistance for Cardano is bullish, with the next reference level to watch being at $0.543, the 50% retracement point, which is 31% higher than the current level.
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