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Cardano (ADA) stunned bears, soaring by 14% to reclaim the $0.45 price level as the broader cryptocurrency market posted a slight recovery. Cardano is, however, outperforming the broader crypto market, and there are indications that the current price is not the top for the coin.
Cardano key indicators hint at upside
According to CoinMarketCap data, Cardano, at press time, is changing hands at $0.4518, which represents a 14.53% increase in the last 24 hours and a weekly high. This spike is about 8% higher than the broader crypto market, which rose by 6.8% within the same time frame.
Cardano has flashed several bullish indicators that suggest it could be up for more uptrend. Primarily, its trading volume has increased by 48.11% to $969.06 million. This renewed interest from market participants might support further rallies.
Additionally, the asset’s technical chart reveals that ADA has reclaimed the critical resistance of $0.44. With Cardano changing hands above this resistance and trading volume high, a sustained momentum could help stabilize ADA’s price above this level.
Cardano’s Relative Strength Index (RSI) is at 41, which signals that the coin has exited oversold territory. Traders are treating this as a positive signal of a price reversal for higher levels and could influence their investment pattern and engagement with the coin.
If rekindled interest lingers, investors could look forward to Cardano attempting the next resistance level at $0.55. In order to reclaim this level, ADA has to maintain stability above the $0.44 support it just climbed.
Can December events trigger ADA’s sustained recovery?
In the Cardano ecosystem, several events that are being anticipated in this month of December could act as catalysts to sustain interest. Notably, from Dec. 5, the Coinbase exchange will commence round-the-clock trading of ADA, while on Dec. 8, Midnight’s token will launch. It is on this date that distribution and trading will commence.
This launch and the increased visibility from Coinbase could trigger more upticks for Cardano’s price outlook on the market. Already, the Cardano Foundation has voted yes to a proposal seeking to increase ADA’s listing on several exchanges.
Cardano needs to sustain the current rally if it hopes to retain its position in the top 10 highest-ranked crypto assets by market capitalization. Zcash (ZEC), the privacy-focused coin, is closing in on ADA, and only a sustained rally could prevent ZEC from dethroning Cardano.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team