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Cardano's Price Jumps by 11%, Faces $1 Psychological Resistance

Tue, 03/01/2022 - 09:24
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Arman Shirinyan
ADA price spikes by 11% as cryptocurrency market rebounds
Cardano's Price Jumps by 11%, Faces $1 Psychological Resistance
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Cardano's price has followed the general trend on the market and reached the important psychological resistance level of $1 on the first day of trading in March. The price spike was most likely caused by the rapid change of the market trend, according to CoinMarketCap.

According to the website, the cryptocurrency has faced an 11% price increase and has almost reached the $1 milestone for the first time since the end of February. In addition to the rapid price increase, ADA has faced a spike in trading volume that has reached $1.8 billion.

ADA Chart
Source: TradingView

Previously, ADA was trading for five days in the rangebound and reached the local bottom on Feb. 24 after dropping below $0.75 for the first time since February 2021.

As U.Today previously reported, Cardano's TVL reached a new milestone in February with more than $120 million worth of users' funds being locked in various smart contracts on the chain. As always, the largest volume of locked funds was observed on the SundaeSwap platform.

Long-term market performance of Cardano

While the short-term movement of the cryptocurrency brings some profits to investors, Cardano's long-term performance is far from being the best on the cryptocurrency market. According to on-chain and market data by IntoTheBlock, less than 12% of all ADA holders are making a profit with the cryptocurrency.

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Such a disbalance in profitability in assets is more likely caused by the holders' composition. As the indicator suggests, 75% of all ADA holders have entered the cryptocurrency in the last 1-12 months. Most likely, the majority of investors bought the asset during its bullrun to $3.

At press time, Cardano trades at $0.93 with a 10% price increase in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.