With ADA experiencing a massive surge in recent times, this article highlights three potential scenarios for the eighth-largest cryptocurrency in the short term.
Cardano (ADA) has been recording significant gains recently, surging over 20% in the past two weeks. ADA’s recent upward trajectory has left many holders anticipating a potential rally towards the $0.50 price level.
ADA Shows Bullish Divergence
Data from its chart shows that ADA is showing bullish divergence, as seen in the Relative Strength Index (RSI) and moving averages.
While it is possible that ADA’s RSI could result in a potential pullback due to external factors, the indicator could pave the way for bulls to regain control of the market again.
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The eighth-largest cryptocurrency by market capitalization aims to surpass the long-term resistance trendline.
3 Potential Scenarios for ADA
With a current price of $0.291, ADA faces three potential scenarios, given its fundamental and technical outlooks.
Cardano’s growing TVL could bolster the price of ADA, helping the coin to break out above the $0.5 level in the short term. Additionally, another major factor that could propel ADA to the $0.5 mark is a potential introduction of a major upgrade by the Input Output Global (IOG) team.
For the neutral scenario, ADA could continue to trade around its current price of $0.29. To reach the $0.5 mark, ADA would require a major catalyst linking to the crypto asset.
ADA could plunge to its previous levels of around $0.24 due to a broader market pullback or negative news related to the project.
However, this seems highly unlikely out of the three potential price actions for ADA due to the coin’s fundamental and technical outlooks, as well as Cardano TVL growth.
ADA Surges Over 1% in 24 Hours
At press time, ADA was changing hands at $0.291, up 1% over the past day. The coin is currently ranked as the eighth-largest crypto asset with a market cap of $10.26 billion.
Cryptocurrency traders have been showing significant interest in ADA, as reflected in its 24-hour trading volume, surging above 18% to $290.6 million, according to CoinMarketCap data.
ADA Price Correlates with Cardano TVL
It bears mentioning that Cardano’s recent price surge correlates with the ecosystem’s total value locked (TVL). Data from DeFiLlama shows that the network’s TVL currently stands at $197 million, up 27.94% over the past two weeks.
Notably, Minswap and Indigo rank as the two largest DeFi projects on Cardano. Both platforms account for $92.36 million of the entire $197.13 million worth of assets locked on the network.
The rapid spike in Cardano’s TVL suggests a growing confidence and adoption of Cardano. With Cardano enthusiasts locking more assets on the network, ADA could continue its rally toward the $0.5 mark.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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