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Over the last 24 hours, Cardano (ADA), the 11th largest cryptocurrency by market cap has seen a notable 8% increase in its price as the general crypto market rebounded.
At the time of writing, ADA was up 7.11% in the last 24 hours to $0.36, while it was up 11.23% on a seven-day basis.
The price surge aligns with the broader market recovery and advancements within the Cardano ecosystem, including ongoing upgrades and partnerships that bolster its utility and adoption.
The cryptocurrency market rose in the early Thursday session, driven by a rally in U.S. technology equities and gains on the Asian equity market. U.S. inflation figures for August bolstered forecasts for a Federal Reserve rate drop in the coming weeks, as core inflation climbed faster than expectations to more than 0.3%.
Tomiwabold OlajideThe latest surge has caught the attention of the crypto community, with prominent Cardano advocate Dan Gambardello outlining the ADA cycle in five steps. These are: "Cardano down, fun while it lasted"; "tech does nothing, simply a bull trap"; "told you. You should've listened"; "here we go again, another bull trap"; and, finally, "all-time highs destroyed."
According to Gambardello, Cardano is currently at step 3, which is the "told you, you should have listened" phase. This suggests a phase where market observers reaffirm their warnings and skepticism amid ADA's lackluster price action.
ADA price action
Cardano began to rebound after hitting lows of $0.303 on Sept. 6. Since this date, Cardano is on track to mark five out of six days in green.
The rally has brought Cardano above the daily SMA 50 at $0.354, which has held the ADA price back since mid-April. ADA made attempts to break out of this barrier in July and August, but the bulls were rebuffed.
In the days ahead, the crypto market will be watching for a sustained break above this key barrier, notably at the daily SMA 50, to adjudge ADA's next price move.
If this happens, ADA might target the $0.456 level next, ahead of the daily SMA 200 at $0.468. A sustained break above these levels might kickstart the next leg of uptrend for ADA prices. On the other hand, Cardano has established support at the $0.27 and $0.30 levels in the event of a decline.
Mushumir Butt
Yuri Molchan