Cardano’s ADA price is rising above key resistance

Cardano’s ADA has surged in the last eight weeks as traders keep going back to Cardano investments in the bullish market. The current market sentiment has also made other cryptocurrencies like Bitcoin, Ethereum, Solana, and more make an overall jump in the crypto market. 

According to past performance, Cardano has performed well compared to other major cryptocurrencies. During the previous cryptocurrency bull run in 2021, the Cardano rally took place due to its cheaper price than Bitcoin. 

At present, ADA is trading at $0.4739, while BTC is hovering around $43,000. Hence, a strong cryptocurrency correlation has made investors choose Cardano purchases over Bitcoin at current prices. 

Meanwhile, ADA is gradually climbing the DeFi (decentralized finance) ladder as TVL (total value locked) within the ecosystem has risen over $330 million, making Cardano the 11th largest blockchain in the world. Cardano might soon become the 10th largest chain if the trend continues. 

The current DeFi charge on Cardano is led by leading decentralized applications such as MuesliSwap, Liquid, MinSwap, and Indigo, which have more than $17 million in digital assets each. TVL is also worth mentioning as it is broad-based, with more than 15 decentralized platforms having over $1 million in TVL. 

Futures open interest on Cardano has also increased steadily, standing at more than $200 million this week, higher than the YTD low of less than $89 million, considering futures open interest is also an essential gauge that indicates a positive movement for Cardano. 

According to the ADA price prediction, Cardano projects a strong bullish uptrend as the token crosses the vital resistance level at $0.40. This is one of the highest swings made in November, and the crossover validates the robust bull run. 

At present, Cardano has crossed the ultimate resistance level at $0.462 into a new support level. This has been the highest point since April and has remained over the 50-day and 100-day MAs. Hence, while investors can expect a short-term pullback, the future outlook for ADA is more bullish as investors target a key resistance level at $0.50.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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