Cardano (ADA) is currently trading at $0.2752, with an increase of over 65% in its trading volume at $304.79 million. Its price change in 24 hours is +$0.006083 representing a 2.17% increase. Also, the 24-hour low of ADA is $0.2681, while its high is $0.27562. The market capitalization has risen by 2.25% to $9.51 billion. It is currently ranked among the top ten cryptocurrencies, according to CoinmarketCap, at number 9. 

The circulating supply is 34.52 billion ADA, with its maximum token supply pegged at 45 billion ADA tokens. ADA has performed well recently since the turn of the year, prompting optimism among holders.

With the prolonged crypto winter in 2022, investors are hoping for more favorable market conditions moving forward. Cardano’s recovery has rekindled interest in the project and questions on how long it can sustain the rally.

What Is Behind ADA’s Price Upsurge?

ADA is enjoying increased adoption since its trading volume has increased. Investors and holders of the coin are more likely to buy into the project due to its utility. Cardano is one of the largest blockchains to use the energy-efficient proof-of-stake network.

This proof-of-stake helps in energy saving and environmental protection. Cardano network also supports the creation of smart contracts. These smart contracts facilitate the creation of decentralized applications (DApps) on the Cardano network.

It is also gaining more attention in Web3 and for gaming applications. With faster transaction times and regular upgrades, it is ideal for technological innovation. Cardano upgrades also undergo thorough research and scrutiny before being released to the public.

ADA Price Prediction

ADA is trading below its 50-day and 200-day Simple Moving Average (SMA). However, the candlestick formation on the chart shows a possible bullish run in the coming days. A thick green candle on the daily chart indicates sustained bullish pressure and will likely continue in the coming days.

ADA’s closest resistance level is $0.329. Other resistance levels are $0.44, 0.595, and $0.777. If the bulls sustain the pressure, it will test the nearest resistance level of $0.329 in the coming days. The support levels of $0.260, $0.262, and $0.265 held and acted as a pivot for the price upsurge. 

The Relative Strength Index (RSI) stands at 49.19, in the neutral zone above the oversold region of 40. However, the RSI will probably rise above 49 in the coming days. The Moving Average Convergence, Divergence (MACD) shows neutrality but indicates a possible uptrend. The MACD line falls under the signal line but is positioned upward.

The price of ADA will record a slight increase in the coming days. However, from the candlestick patterns, many red candles are present. It means that the trend can reverse at any time to a bearish pattern. Expect ADA to increase to $0.329, its nearest resistance level.

Please note that this is not investment advice. The above price predictions are the analysis of the author. Always do proper research and technical analysis.  Invest the amount you can afford to lose.

Featured image from Pixabay and chart from TradingView.com

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Filed under: Bitcoin - @ January 6, 2023 10:00 pm