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- Cardano (ADA) has been predicted to follow a historical trend to break the longstanding resistance level at $1 once it holds within the price range of $0.45 and $0.50.
- Cardano’s ecosystem has generally been booming since last year with the total number of transactions reaching 83.6 million on March 21, 2024.
Cardano’s ecosystem growth has been a clear display of strength characterized by resilience in the face of the ongoing market trend. In the past few weeks, its native token ADA has witnessed unexpected volatility reportedly driven by geopolitical tension and the upcoming Bitcoin halving.
This has positioned the price far below its all-time high price of $3. At press time, ADA was trading at $0.44 after recording a negative year-to-date return of 29% and a seven-day decline of 25%. Its current price action, however, appears opposite to its 24-hour trading volume which has surged by 8% to reach $509 million.
Analyst Provides a Technical Analysis of the Asset
Analyzing the price of ADA is a renowned analyst Trend Rider. According to him, there could be a very big “showdown” in the market that could see the asset replicating its October 2020 performance. At that time, ADA fell considerably to $0.10 before staging a bull run to hit $3.
Attention $ADA Holders! If history repeats itself, we might be on the cusp of $ADA’s ultimate support test before skyrocketing. Recall October 2020? The price dipped to $0.10 before soaring to $3. With a bullish RSI crossover and retest, are we gearing up for another parabolic move?
According to him, ADA finds itself at a “sweet spot for longs between $0.45 and $0.50,” which is very important to sustain an uptrend. Historical data also shows that the Relative Strength Index (RSI) crossovers accurately indicate the start of a bull and bear market for the asset. Based on the current price behavior, the RSI is interacting with its moving average. The last time this happened, there was a significant price move after a short time.
According to Rider, ADA could stage an explosive run in an attempt to break the $1 resistance level when the asset holds its current zone. However, the impact could be gravious when the asset falls below the $0.45 and $0.50 range. This, according to him, could send ADA to $0.25. All in all, the underlying support levels are stronger than ever according to Trend Rider, and could “set the stage for a potential bullish breakout.” Interestingly, this is in line with Ali Martinez’s assessment of the asset recently reviewed by Crypto News Flash.
Cardano’s (ADA) Ecosystem Booming
Regardless of ADA’s slow pace, the ecosystem has generally been booming with a 2023 Messari report disclosing a whopping 166% Quarter-over-Quarter (QoQ) surge in Cardano’s Total Value Locked (TVL). Its Year-over-Year increase was also around 693%. As of March 21, its on-chain data had recorded an impressive performance with the total number of transactions reaching 83.6 million. This averages between 50,000 and 70,000 daily. In a Forbes report, Gracy Chen, Managing Director of Bitget explained how the ecosystem has surpassed several renowned crypto projects.
The number of smart contracts on Cardano increased by 67% in just three weeks in March 2024, adding 9,671 new contracts, demonstrating the rapid growth and adoption of Cardano’s smart contract platform. Additionally, Cardano has become the blockchain with the highest development activity during Q4 2023, surpassing other major crypto projects, including Polkadot, Kusama, Cosmos, and Ethereum. According to Santiment data, Cardano recorded 611.47 GitHub commits in the past 30 days, significantly ahead of Polkadot and Kusama.