Decentralized finance (DeFi) asset Cardano (ADA) continues to record increased buying pressure while appearing to decouple from the general crypto market with a price explosion.
Indeed, by press time, Cardano had a market cap of $11.31 billion, representing an inflow of about $1.56 billion within 24 hours. On the daily chart, ADA’s market cap peaked at $11.74 billion.
The significant buying pressure has translated to ADA’s value spiking, trading at $0.33 at the time of publishing with 24-hour gains of over 14%. Over the past week, Cardano’s price has also surged by over 28%.
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Notably, having breached the $0.30 resistance level, the position could act as a critical anchor toward ADA moving to reclaim the crucial $0.50. However, the smart contracts asset remains in focus but still faces uncertainty if investors start taking profits.
ADA’s rally triggers
It is worth noting that historically, ADA has mainly traded in line with the general crypto market; therefore, the digital currency’s latest significant rally remains vague. However, the ongoing upward trajectory is a build-up from the market’s recent short-term gains.
Notably, ADA’s momentum can be attributed to several factors, with network development emerging among the top. For instance, the platform is witnessing sustained growth in smart contracts. For instance, as of January 8, the number of Plutus smart contracts stood at 4,803, adding 780 smart contracts in the month of December alone.
Overall, Cardano seeks to build on the momentum established in 2022, where almost all core network activity registered growth. At the same time, ADA has recorded increased whale accumulation, with high-net-worth investors betting on the token’s possible rally.
Furthermore, as the new year takes its course, more development activities are likely to catalyze ADA’s possible gains. In this line, the network is awaiting to release of two stablecoins slated for the first quarter of 2023.
Community members are also awaiting the highly anticipated Layer-2 scalability solution Hydra, which seeks to improve transaction speed with low latency and high throughput without compromising on the low gas fee.
ADA technical analysis
Elsewhere, ADA technical analysis on TradingView is flashing bullishness. A summary of the daily gauges recommends the ‘buy’ sentiment at 13. The moving average gauge is also for ‘buy’ at 10, while oscillators align with ‘buy’ at three.
In the meantime, despite ADA’s price resurgence, projections for the token remain bearish. The machine learning algorithm at PricePredictions indicates that the token might trade at $0.2756 on January 31, 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk
