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Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has been steadily climbing since Feb. 7. The surge accelerated, with ADA rising by 10% in the last 24 hours to a high of $0.639, the highest level since Jan. 2. At the time of writing, ADA was trading up 9.38% in the last 24 hours at $0.625.
In a foreshadowing of the ADA price rise, crypto analyst Ali predicted in the past week that the ADA rally might come earlier than expected if history repeats itself. According to the scenario painted by Ali, ADA is expected to rise to $0.80 first and then retrace to $0.60 before entering a bull run toward $8 by January 2025.
Tomiwabold OlajideIn the meantime, there is a resistance at $0.678, which might be likely crossed. Cardano might then rally to the overhead resistance level of $0.695.
The important support to watch on the downside is at the moving averages. A break and close below the 50-day SMA ($0.533) will suggest that the recent breakout may have been a bull trap. ADA might then fall to sturdy support at $0.447.
However, as ADA has soared to multimonth highs, some investors are looking forward to taking profits and selling their coins. Cardano founder Charles Hoskinson reacted to a post indicating such intention with a GIF image of a man drenched in the rain, suggesting that the idea of selling did not go down well with him.
On Feb. 17, Cardano's founder responded positively to a post by a Cardano enthusiast who anticipates the Cardano Treasury will expand to $4.5 billion the next time ADA crosses $3.
Cardano experiences growth
According to Messari's Q4 Cardano report, revenue in USD climbed by 66.7% quarter over quarter. However, this was not only due to ADA's price action; revenue at ADA climbed by 10.6% quarter over quarter.
Cardano's Treasury balance increased by 2.6% QoQ to 1.43 billion ADA. The 40 million ADA rise was broadly consistent with growth in recent quarters. Total value locked (TVL) in USD grew by 166% QoQ, reaching an all-time high of $449 million on Dec. 14.
This enormous Q4 growth resulted in a 693.4% YoY rise. TVL in ADA also reached an all-time high in Q4, totaling just over 700 million ADA.
Gamza Khanzadaev
Vladislav Sopov
Dan Burgin