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Cardano (ADA), the ninth largest cryptocurrency by market capitalization, has seen a 5% increase in price amid a slight rebound on the crypto market, which saw Bitcoin surpassing the $97,000 mark once again.
After days of declining and lackluster price action, the crypto market showed early signs of a rebound in the early Thursday session. Bitcoin rose past $97,000, and several crypto assets, including Cardano, reverted to green, while a few crypto assets posted double-digit gains. The rebound comes amid fresh inflows of capital into the market, which sparks optimism that the worst of recent volatility might be behind us.
Yuri MolchanThis is evident in an increase in USDT exchange inflow, which tracks the movement of USD Coin (USDT) between wallets and exchanges.
According to on-chain analytics platform Cryptoquant, the USDT inflow surpassed 450 million for the first time since Feb. 3. This marks a notable shift, as it might suggest renewed buying power entering exchanges.
When the inflow is positive (more deposits than withdrawals), it indicates greater stablecoin liquidity on exchanges, which can be a good predictor of market movements.
ADA price action
ADA began to rebound from lows of $0.731 on Feb. 19. The rebound sustained in the early Thursday session, with ADA up 4.33% in the last 24 hours to $0.782. ADA is slightly higher weekly, up 1.10%.
Cardano achieved a high of $0.828 on Feb. 17 before falling from a high of $0.813 the following day, indicating that bearish sentiment persists and traders are selling on rallies.
On the upside, bulls will need to push and sustain ADA price above the short-term barrier at $0.82 to begin a move to the 50-day SMA at $0.90.
Currently, ADA is consolidating between its daily moving averages of 50 and 200 at $0.906 and $0.647, respectively. This move would cause ADA to escape its current range trade and aim for $1.
Dan Burgin
Vladislav Sopov