Cardano (ADA) Price Soars By 5% As Buying Pressure Mounts

Cardano (ADA) Price Soars By 5% As Buying Pressure Mounts

Cardano (ADA) token hit a two-year low of $0.239 on Dec 30 but has since experienced a sustained surge that has propelled the price to $0.264 at press time. In the last 24 hours, ADA has been up around 5%, with a trading volume of around $250 million. However, the 1-day chart shows that Cardano is far from over the mountain.

ADA price has been in a descending trend channel since mid-August 2022. Since the beginning of December alone, the ADA token has been down 25%. While the 50-day simple moving average (SMA) has an initial target of $0.291, ADA needs another push above $0.33 to break out of the downtrend.

Therefore, today’s move could mark a burgeoning momentum for the bulls. The MACD indicator showed a bullish crossover a few days ago, suggesting buying pressure is building.

Meanwhile, the Relative Strength Index (RSI) is currently at 46, having spent much of the second half of December in oversold territory.

Looking at the 4-hour chart, Cardano has seen a massive rejection at the critical $0.266-$0.271 resistance zone. The mark could be the first step to reaching the $0.28 level for ADA investors.

After that, key resistance would wait in the $0.291-$0.30 range. If Cardano manages to break out, attention could shift to the higher time frame and launch a final attack against the downtrend.

Cardano Whales and DeFi Activity Could Spur the Price

The growth of the Cardano DeFi ecosystem may have given the price of ADA some advantage. After bottoming out at $48.95 million on Jan 1, the total locked value (TVL) is back up to $52.53 million today, according to data from DeFiLlama. Some of the leading decentralized finance protocols on the Cardano network have seen a spike in activity.

Within the top 7 decentralized applications (apps), all saw a TVL increase of at least 3.5% in the last 24 hours. At +21.5%, Lending Pond leads the growth over this period and the last month (+50%).

More prominent ADA investors could be another reason for the price increase. According to WhaleStats data, large BSC holders are also interested in purchasing Cardano (ADA). In the last 24 hours, ADA purchases have ranked among the top ten among the 4,000 most giant BSC whales. Furthermore, the giant BSC whales currently hold 19.9 million ADA, worth $5.19 million and accounting for 0.68% of the total supply.


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