Cardano Price Up By 11.54% – Time to Buy ADA Coin?

Cardano is a third-generation blockchain network in the race to topple Ethereum from the DeFi throne. Although still in development, the Ouroboros-powered proof-of-stake (PoS) protocol has remained one of the hottest crypto assets in the market.

After losing its fourth spot briefly to Tether’s USDT and arch-rival Solana, Cardano is back with an explosive rally in the past few hours. Its governance token ADA is now one of the most heavily traded as investors look to buy ADA.

This article looks into the popular Ethereum killer’s technical and fundamental performance in the past day.

ADA: Making A Strong Claim On The Top 5 Spot

The crypto ranking chart has been fluid in the last 24 hours, with several projects either gaining or losing their spot to more explosive digital currencies.

This has been the case of Cardano, which was on a strong bearish streak for nine consecutive weeks after hitting a record value of $3.10 in the prequel to the launch of smart contracts (Alonzo hardfork) on its platform.

However, it looks like the coast is clearer for the peer-reviewed protocol as it has rapidly surged three spaces from the seventh spot of yesterday to fourth place today. This rise has seen it battle close rivals in the decentralised finance (DeFi) race Solana and stablecoin USDT. 

Cardano is seeing major bullish activities at press time and is trading at $2.274, up 11.54% in the past day. Weekly gains of 15.04% further assert this newfound momentum in ADA price action, and its market cap has swelled as a result. 

Cardano currently has roughly $76 billion in market cap to its name, and it has been up 11.13% in the past day. 24-hour trading volume is impressive and stands at $4.9 billion, with an increase of 119.98%. 

The network’s momentum could be due to the forthcoming Hydra upgrade, which will add layer-two scaling solutions to the Cardano network.

ADA Technical And Fundamental Analysis

Even though Cardano has struggled in the $2 range for some time, the self-styled third generation protocol is catching some major tailwinds, as evidenced in its price movement.

The digital asset soars comfortably above the 20-day moving average (MA) support price of $2.040, indicating strong bullish momentum. This is one of its best rallies following a series of sub-par performances in the past four weeks.

The 100-day MA price of $2.2 shows a close call for the ADA price, while the 200-day MA price of $1.842 indicates more extended bullish momentum in the coming weeks.

The 14-day relative strength index (RSI) points that ADA is underbought at 63.65, but this is expected to change in the coming days as investors’ interests garner momentum. All in all, investors are now more disposed to buy ADA than ever.

The Moving average convergence and divergence (MACD) confirm the rush to buy ADA as the green trendline leads the yellow counterpart, indicating a strong buy signal.

Fundamentally, the Cardano network has been preparing its blockchain for a major breakout when it is fully live. For the time being, the PoS protocol is snapping up major partnerships among mainstream businesses. One is with Dish Network, where Cardano will provide digital identities to the network’s 8 million customers.

The excitement around Cardano is even expected to become more with developers now awaiting its Hydra update. In a YouTube AMA video, founder and CEO Charles Hoskinson noted that the Hydra upgrade is going according to plan. If plans proceed as expected, Cardano could have a transaction speed per second of over 1 million throughput when it goes live.

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