Cardano enthusiasts have been cheering as the price of ADA has been steadily climbing in recent weeks, reaching its highest level since July and breaking above the critical $0.3000 mark. As of now, ADA is trading at $0.3200, marking a notable 9.82% gain in the past week and a remarkable 20% surge in the month so far. With a total market cap of $11 billion, ADA currently holds the 8th position, following Solana closely.
The Rise of ADA
The surge in Cardano’s price can be attributed to strong on-chain data and positive market trends. As a competitor to Ethereum, Cardano has joined the ongoing cryptocurrency market rally, recovering from some of the losses it experienced in the previous months.
The entire crypto market has been experiencing a bullish phase, fueled by the excitement around the proposed bitcoin EFT and Bitcoin’s flirtation with the crucial $35,000 resistance level. The global crypto market cap now stands at $1.29 trillion, with the Crypto Fear and Greed Index hitting a greed level of 72, indicating growing risk appetite among investors.
Increased user activity on the Cardano platform has also contributed to the rally. Blockchain intelligence firm Santiment revealed that address activity and whale transactions on the Cardano network have reached their highest levels in 3 months. On-chain metrics show a significant uptick in ADA address activity and whale transactions, signaling a strong bullish sentiment.
Technical Analysis of Cardano Price
Cardano’s price action has been closely mirroring Bitcoin’s movements, impressing investors with its recent performance. The daily chart indicates a steady rally for ADA, reaching a three-month high.
ADA’s price is currently above key moving averages, including the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. The Relative Strength Index (RSI) is in the overbought zone at 78, reflecting high demand and buying pressure. The Moving Average Convergence Divergence (MACD) indicator is also signaling a buy.
With the price likely to hold above $0.30 in the short term, a push above $0.40 could pave the way for a rally towards the $1 milestone. However, a drop below $0.30 could lead to a retracement towards $0.2730.