One of the key altcoins that is dominating the crypto market is Cardano (ADA) which has seen a whopping 200% surge from $0.20 to over $1 in recent weeks. This explosive growth positions Cardano is likely to continue in the coming days as the coin has set sights for the $3.11 mark.
ADA was hovering around the $1.0518 trading point after a 200% monthly gain. The 87.35 relative strength index suggests a price consolidation before it surges again.
The altcoin's resurgence is attributed to multiple factors, including improved regulatory sentiment following Gary Gensler's resignation from the SEC. Previously, the regulatory body's classification of ADA as a security had dampened investor confidence, but recent developments have reignited market optimism.
Cardano's development company, IOG, has been instrumental in challenging regulatory claims, maintaining that the SEC's accusations are factually incorrect and cannot interrupt blockchain functionality. This stance has further bolstered investor confidence in the altcoin.
The technical indicators of the altcoin point towards a price rally if ADA crosses the $1.10, $1.20 and $1.50 resistance levels. However, in case it fails to cross the barriers, Cardano will seek support at $0.85 and $0.60 levels.
The altcoin's performance is closely tied to Bitcoin's market dynamics. With Bitcoin currently trading at $97,918.60, near the psychologically significant $100,000 level, the broader cryptocurrency market remains on edge. A decisive Bitcoin breakout could trigger substantial inflows into altcoins like Cardano.
Analysts predict Cardano could potentially retest its all-time high of $3.11, contingent upon Bitcoin maintaining its bullish momentum. However, the current RSI of 87.35 indicates an overbought condition, suggesting a potential short-term pullback or consolidation.
Market Outlook:
- Potential Bullish Scenario: Bitcoin breaks above $100,000, driving Cardano towards $1.50
- Bearish Scenario: Bitcoin retraces to $90,000-$85,000, potentially halting Cardano's upward trajectory
The altcoin market continues to demonstrate resilience, with Cardano positioned as a key player in the ongoing cryptocurrency rally. Investors are advised to monitor Bitcoin's performance, as it remains the primary driver of market sentiment and altcoin price movements.
At press time, Cardano was down 8.34% to trade at $0.914 while its trading volume went down to $2.98 billion, a 7.25% decline, and the market cap decreased to $32.13 billion.