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Cardano (ADA), the ninth largest cryptocurrency by market capitalization, has risen past the $1 mark, gaining 7.5% in the last 24 hours as the broader crypto market recovers. This follows an earlier sell-off this week, with ADA dipping to lows of $0.876 in Monday's trading session.
The crypto market is currently in the green, with several crypto assets posting gains as investors reacted to the latest CPI data. Core inflation fell to 3.2% in December — lower than predicted.
The December CPI report combined with a relatively soft reading on wholesale prices may indicate that, while inflation is not falling substantially, it is also not showing signs of increasing.
This provided a boost to the markets, including cryptocurrencies, which are trading higher on a daily basis. At the time of writing, ADA was trading at $1.05 and remains higher at 7.57% weekly.
What's next?
Cardano hit support at $0.876 on Jan. 13, which sparked a comeback. The ADA price's recovery on Tuesday targeted a break of the daily SMA 50 at $1.01; bulls pushed further during today's trading session, breaking through this crucial barrier and reaching highs of $1.069.
Going forward, ADA must sustain momentum above $1, which coincides with the daily SMA 50, for it not to return to its previous range.
If this is achieved, ADA might target $1.15 and $1.32. Breaking through these levels could signal further upside potential, possibly pushing ADA toward $2. The daily RSI is in the positive zone, giving the bulls an advantage.
On the downside, $0.87 and $0.76 act as major support levels. If ADA fails to stay above $1, it may see renewed selling pressure, testing these support levels.
Meanwhile, expectations remain high for the Plomin hardfork. A hotfix of the Cardano node 10.1.4, which addresses a potential stability issue discovered on pre-prod and helps keep block production steady ahead of the Plomin hardfork, was released in the past week.
All Cardano stake pools and relays are expected to upgrade to node version 10.1.4 to mitigate a potential DoS attack following the Plomin hard fork on the mainnet.