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Cardano price continued its strong comeback this week as Bitcoin approached the important resistance level at $100,000. The ADA token jumped to a high of $0.90, its highest level since April 2022. It has risen in the last three consecutive weeks and by over 275% from last year’s low.
Cardano price prediction
The daily chart shows that the ADA price has remained in a strong bullish trend in the past few months. It has risen above the ascending trendline that connects the lowest swings since January 2023.
Cardano has moved above the key resistance level at $0.80, its highest level in March this year, a sign that it is gaining momentum. This price was also the neckline of the slanted double-bottom pattern. It has also jumped above the 78.6% Fibonacci Retracement level.
Cardano has also jumped above the 50-week Exponential Moving Average (EMA). It has moved above the ultimate resistance of the Murrey Math Lines tool at $0.78.
Therefore, the path of the least resistance for Cardano is bullish, with the next point to watch being the 50% retracement point at $1.6, which is about 77% above the current level. If Cardano gets to that price, its market cap will get to over $37 billion, which is still lower than its all-time high of over $90 billion.
The stop-loss for the bullish Cardano price forecast is at the psychological point at $0.50. A drop below that level will point to more downside.
ADA price chart | source: TradingView
Rising fear and greed index
The ongoing Cardano surge has coincided with the sharp increase in the crypto fear and greed index, which has moved from the fear zone of 32 a few months ago to the extreme greed area of 88.
Cryptocurrencies do well when there is a sense of greed in the market. This greed has also coincided with the ongoing Bitcoin price rally as the coin nears the important resistance point at $100,000. It has soared to $99,200, giving it a market cap of over $1.96 trillion.
Cardano’s jump has also happened as investors cheer the recent Donald Trump election in the United States. He has promised to implement positive regulations and even the formation of a crypto council. Some top officials from companies like Circle, Coinbase, and Kraken are said to be interested in joining the council.
Charles Hoskinson, Cardano’s creator, has also hinted that he will be interested in working with the US government on crypto issues. He also recently hinted that he was about to sign a deal with Elon Musk’s SpaceX company.
Cardano price has also jumped amid positive movements in its ecosystem. The network’s DEX volume has jumped by 65% in the last seven days to $165 million. While this growth is impressive, it means that Cardano is smaller than other chains like Base and Arbitrum.
Cardano’s DeFi total value locked (TVL) has jumped to over $525 million, its highest level on record. This growth has been led by popular applications in the ecosystem like Liqwid, Minswap, Indigo, Lenfi, and Splash Protocol.
Read more: Cardano price: what next for ADA after 130% spike?
While this growth is impressive, the amount in ADA terms has not been all that great as it has remained around 593 million in the past few months.
Cardano’s stablecoin market cap has jumped to over 21.8 million ADA tokens, much higher than last month’s low of 12 million. This stablecoin volume is much lower than what is in other chains like Base, Tron, Solana, and BSC. Ethereum has stablecoins worth over $97 billion, while Solana, Tron, and BSC have tokens valued at over $4 billion, $57 billion, and $5.7 billion.
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