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Cardano (ADA) price rises, reaching its highest in 17 months

By Solomon Victor

In the aftermath of bitcoin’s recovery and amidst a surge in altcoin interest, Cardano (ADA) is building momentum with strategic moves and promising indicators. 

ADA’s Support Surges Amidst Altcoin Momentum

As bitcoin regains ground after the U.S Federal Reserve kept interest rates unchanged, ADA experiences a remarkable climb, reaching its highest level in 17 months. Coinglass data reveals a $0.51 to $0.68 surge, triggering a $4.7 million liquidation and fortifying ADA’s support. The potential for further growth looms, hinting at a trend towards $0.8.

IntoTheBlock, a data science company specializing in crypto analytics, evaluates ADA addresses based on a comparison between the average purchase price and the current market price. Their findings reveal that 57.16% of addresses have the current ADA price higher than the average cost, while 1.22% are below the average purchase. The remaining 41.62% are in alignment between the current price and average cost. Additionally, IntoTheBlock highlights that 65% of ADA wallet addresses have held their holdings for over a year, shedding light on the long-term commitment of most ADA holders.

Read also: What is Cardano (ADA)?

ADA’s DeFi Milestones

ADA is also gaining attention in the DeFi sector, showcasing a surge in total value locked (TVL) exceeding $435 million, per data from Defi Llama. This substantial growth, particularly in projects like Indigo and Minswap, marks a significant leap from April’s $330 million. The DeFi realm is becoming a crucial arena for ADA‘s expanding influence.

LuckSide Crypto, a notable analyst in the crypto sphere, recently shared a perspective on ADA in his latest YouTube video on December 12th. Despite acknowledging the prevailing market turbulence, LuckSide Crypto, applying technical analysis, identified a bullish pennant pattern on ADA’s price chart—what is considered a reliable signal for a potential breakout. 

In his observation, LuckSide Crypto delved into the current crypto sell-off, theorizing it as a possible “one last big shakeout” orchestrated by significant players aiming to induce fear for strategic consolidation. LuckSide Crypto believes this attempted manipulation lacks substantial traction. Moreover, he emphasized the pivotal $40,000 level for bitcoin by the end of 2023, foreseeing its significance for a substantial upside in 2024. While expressing optimism for ADA, he also noted that all-time highs for ADA might be a couple of years away. 

Read also: What are the top 5 blockchain projects you should know?

ADA’s Price Action 

Currently stabilizing near $0.68-$0.69, ADA‘s relative price index (RSI) on the weekly timeframe at 96 suggests an overbought condition. The battle between bulls aiming for $0.89 and bears eyeing $0.51 determines ADA’s near-term trajectory. Success for either side could dictate the next significant move for ADA.

ADA’s current price stands at $0.638, reflecting a 2.0% decline in the last 24 hours but a 39.20% increase in the past 7 days. 

Bitcoin ETF Anticipation 

As anticipation mounts for the potential approval of the first Spot Bitcoin ETF in the United States, the crypto market stands at a pivotal juncture. With the U.S. Securities and Exchange Commission (SEC) reviewing 13 applications from major asset management firms, including BlackRock, Fidelity, Grayscale Investments, and ARK Investments, the market senses the imminent possibility of a historic breakthrough. Talks surrounding crucial technical aspects and recent updates about these applications as reportes by Reuters indicate some level of progress. Observers continue to watch how January 2024 when the SEC is expected to decide on ARK Investments’ application pans out.

The likely approval of Spot Bitcoin ETF by the SEC carries the potential to attract traditional investors, injecting substantial funds into the crypto space which may most likely trigger a robust bull cycle. 

Read also: Introduction to Altcoins: Strengths, weaknesses, opportunities, and threats

Image source: Coinmetrics

Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.