The price of Cardano (ADA) rises 5% as pressure grows
On December 30, the price of a Cardano (ADA) token fell to a two-year low of $0.239 per token. Since then, its value has increased gradually; as of the time of publication, it was $0.264. ADA has increased by roughly 5% over the past day, and about $250 million worth of it has been traded.
The 1-day chart, however, demonstrates that Cardano is still in serious difficulties. The cost of ADA has been declining since the middle of August 2022. The value of the ADA coin has decreased by 25% since the start of December.
The 50-day Simple Moving Average (SMA), which is an initial target, is at $0.291. However, ADA needs a further surge above $0.33 to reverse the downward trend. Therefore, the movement today might be a sign that the bulls are becoming more powerful. The MACD indicator displayed a bullish crossover a few days ago, indicating that there was increased buying pressure.
After spending the second half of December in oversold territory, the Relative Strength Index (RSI) is now at 46, which is neutral territory.
Cardano experienced a significant rejection near the crucial $0.266–$0.271 resistance region on the 4-hours chart. The mark may represent the first significant step for those who have purchased ADA toward the $0.28 level. After that, the most significant resistance is found in the region between $0.291 and $0.30. The higher time frame can only be examined if Cardano makes a breakout, positioning a final strike against the bearish trendline.
Price increases are possible as a result of Cardano whale activity and DeFi.
If the Cardano DeFi ecosystem expands, the value of ADA might rise. On January 1, Total Value Locked (TVL) decreased to a low of $48.95 million. DeFiLlama data show that it has risen back to $52.53 million.
There has been an increase in activity on some of the most significant decentralized finance protocols on the Cardano network. All of the top 7 decentralized applications in terms of TVL have increased by at least 3.5% over the past 24 hours. Lending Pool has experienced the greatest growth during this time, increasing by 21.5%, which is higher than last month’s (+50%) growth.
Another explanation for the price increase could be the significant investors in ADA. According to information from WhaleStats, significant BSC holders are also very interested in purchasing Cardano (ADA). Out of 4,000 BSC whales in the past 24 hours, ADA buying is among the top 10 largest. Additionally, the largest BSC whale has 19.9 million ADA, worth $5.19 million, or 0.68 percent of the total supply, which represents the value of all ADA.
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