Cardano’s price has been on the rise, showing renewed strength with a 4.06% increase in the past 24 hours to reach $0.9587. Over the week, the price has gained nearly 19%, with a market cap of $34.12 billion. However, the trading volume has decreased by 40% to $3.51 billion as profit-taking sets in. So, why is Cardano making buzz again? And how far will ADA price go in the short term? Let’s delve into the analysis to find out.
What’s Driving ADA Price Higher?
Governance momentum: The Cardano Foundation has approved ₳605k ($571k) to subsidize a content delivery network for developers. This move signals faster and more efficient decentralized decision-making. Projects like Eternl and Vespr wallets are already utilizing this infrastructure, which could drive broader dApp adoption and network utility.
ETF speculation: Grayscale has filed Delaware trust registrations for a potential ADA ETF. This move mirrors its strategy before launching Bitcoin and Ethereum trusts. While SEC approval is uncertain, the increased institutional interest is evident, with Grayscale’s Smart Contract Fund already allocating 20% to ADA.
Cardano Price Analysis
ADA price has successfully cleared the $0.84–$0.89 resistance band, supported by a 14-day RSI at 71.45 and a positive MACD histogram of +0.0167. This breakout invalidates a multi-month descending channel that had been capping the price since mid-2022. Similar patterns in the past have preceded major rallies, including the 3,000% surge during 2020–2021.
The immediate upside target for ADA price is set at $1.02, in line with short-term Fibonacci levels, with $1.20 as an extended objective if the momentum continues. Currently, ADA is consolidating at $0.9428 on the 4-hour chart, just below the resistance after reaching a daily high of $0.9753. Support is now established at $0.8241, serving as a key invalidation level.
Despite the bullish momentum, a decline in intraday trading volume suggests some caution among traders. A failure to maintain above $0.90 could lead to a pullback towards the mid-$0.80s before any further rally.
FAQs
What is Cardano’s next resistance level?
Key resistance lies at $1.02, with an extended target near $1.20 if bullish momentum continues.
How low can the ADA price fall?
The major support sits at $0.82–$0.84. A breakdown below this level could weaken the uptrend.
What could drive ADA’s price in the coming weeks?
Network upgrades, ETF speculation, and developer adoption of new governance initiatives are likely catalysts for the price movement.
In conclusion, Cardano’s price surge is fueled by governance momentum and ETF speculation. The technical analysis indicates a bullish trend with key resistance levels at $1.02 and $1.20. However, caution is advised as a decline in trading volume could signal a potential pullback. Stay informed about network upgrades and institutional interest to gauge ADA’s price trajectory in the coming weeks.