Trailing Bitcoin’s (BTC) recent conquest of the $45,000 range are the rest of the mainstream cryptocurrencies. One of them is Cardano (ADA), which managed to keep its footing above the $0.60 line after the New Year celebrations. Based on key metrics, the altcoin may be positioned for further push on top of the charts.
Cardano Now
Before anything else, let’s take a look at the trajectory of Cardano as of 1:30 PM UTC on Tuesday. According to the 24-hour chart, its native coin, ADA, has gained over 3% to $0.6257, which puts its market cap at $22.130 billion.
Trading volume surged to 36% as $547.26 million worth of ADA moved between wallets and crypto exchanges within the period. The same timeframe displayed the crypto cruising between a low of $0.60 and $0.6367.
ADA still has a long way to go from its all-time high of $3.10 on September 2, 2021. The present price of the digital asset is nearly 80% short of those numbers, but for now, the focus of the community is recovering the $1 bracket ADA lost since April 2022 of the past crypto winter.
A consolation comes by zooming out the charts though. From there, ADA has consistently managed to go on a roll. The coin was able to increase its value by 1.15% in its seven-day run and 60% on the monthly graphs. The 52-week data shows a whopping 146% increase from a low of $0.23 in 2023.
Bullish Outlook on ADA
ADA’s ace this year may lie in the improvements of its liquidity and healthy trading volume on both centralized and decentralized finance (DeFi) networks. Right now, the total value locked (TVL) of the digital asset sits at more than $420 million. This indicates the total number of staked tokens in their US dollar equivalent and a strong liquidity pool, which all point to Cardano’s robust economy.
Meanwhile, open interest in the crypto spiked from around $100 million in October to the current $255 million. This is a metric exhibiting the level of activity in options and futures contracts held by traders in active positions.
Cardano has also become a darling to memecoins lately. One of them is SNEK which just released its play-to-earn Snake game within the blockchain. The milestone serves as a preview of the potential of the platform for future Web3 games.
Thanks to the Rosen Bridge, Cardano has unlocked cross-chain compatibility for token swaps with the Ergo chain, too.
What’s more, Cardano is about to shift to a more user-driven consensus model this first half of 2024 via the Chang hard fork. The goal of this is to allow fully decentralized voting and treasury within the network that depends on the stakes of ADA holders.
Last but not least, ADA prices have been journeying toward a bullish pennant formation. According to a prominent analyst on X with the alias of Captain Faibic, the pattern could lead to 30% or 40% gains for ADA, which should put its pricing at the $0.80 mark.