Cardano's price surge to $1.20 could potentially mark the start of a continuous upward trend for ADA.
Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, is experiencing a surge in its price, with a 4.88% gain over the past 24 hours. This rally is not entirely independent, as it is somewhat linked to the broader cryptocurrency market trends, including Bitcoin's performance.
Recently, the $0.673 level, which previously served as support for Cardano, was nearly retested during a recent retracement. Interestingly, this level has confluence from the moving averages on the daily chart. Moreover, the June high at $0.73, previously a resistance level, has been reclaimed as support. These indicators suggest a bullish short-term outlook for Cardano, maintaining its position so long as it stays above the $0.755 level.
On the 2-hour timeframe, Cardano is currently at the $0.78 level, which was previously resistance but is now flipped to support. The Moving Average Convergence Divergence (MACD) for Cardano is on the verge of forming a bullish crossover again, further strengthening the bullish sentiment. The Money Flow Index (MFI) and the Chaikin Money Flow (CMF) on the same timeframe suggest that Cardano is strongly bullish in the short-term, with the CMF currently at +0.06, indicating significant buying pressure.
The daily trading volume of Cardano has increased by 74%, indicating increased investor interest. The bullish short-term outlook for Cardano is supported by these technical indicators and price action on the 1-day chart.
Looking ahead, the next potential targets for Cardano are the Fibonacci extension levels at $1.03 and $1.2. These levels align with strong horizontal levels from November to December 2024, providing additional resistance points.
It is essential to note that the future of Cardano is not entirely independent of the broader cryptocurrency market. Historically, when Bitcoin or Ether turn bearish, Cardano often follows due to overall market sentiment and investor behavior. However, ongoing network developments, growing DeFi activity, and possible ETF approval could attract institutional investors independently of Bitcoin's performance.
In conclusion, Cardano's rally in 2025 could continue with some independence from Bitcoin's stalled momentum if ongoing network developments, adoption, and institutional interest materialize. However, it is unlikely to be completely decoupled from market-wide trends.
(Disclaimer: The information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer's opinion.)
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- The surge in Cardano's price, despite some linkage to the broader cryptocurrency market trends, could be partially influenced by its ongoing network developments and growing DeFi activity.
- As Bitcoin faces a potential stalled momentum, Ethereum's performance might also impact Cardano's trajectory due to the broader market sentiment and investor behavior.
- The potential approval of Cardano-specific ETFs could attract institutional investors, potentially decoupling its price from Bitcoin's performance to some extent, as seen in technologies with independent value propositions.
