Cardano (ADA), currently positioned as the 9th largest cryptocurrency by market capitalization, has encountered a downward trend following the prevailing bearish sentiment in the crypto market. Bitcoin (BTC), the market leader, led price corrections for major cryptocurrencies.
Despite ADA’s recent pullback of nearly 20% last week after reaching a 22-month high of $0.810 on March 14, there are indications that a potential trend reversal is on the horizon. This change in momentum could potentially see ADA reclaim the $1 mark, which it has not reached since April 2022.
Building Bullish Momentum for ADA
Crypto analyst “Trend Rider”, who shares his insights on social media platform X (formerly Twitter), highlighted ADA’s market shift from downtrends to uptrends. Looking at the two-week chart, the major moving averages are realigning, signaling a transition to a bullish picture as the indicators turn from red to green.
According to For the analyst, this pattern is similar to a previous occurrence observed just before ADA embarked on a significant bull run.
If history repeats itself and reflects the April 2021 bull run where ADA rose from $0.133 to its current all-time high (ATH) of $3.168 in less than a year, recording gains of over 2,000%, a similar uptrend could easily take ADA back to the past. the $1 mark.
If another 2,000% price increase materializes, it could see Cardano’s native token reach the $12.6 level, marking a significant quadrupling of its value. all time high March.
As the market correction continues, Trend Rider identified crucial support lines that must be retained to maintain the bullish structure. According to the analyst, the support trend for ADA should vary between US$0.45 and US$0.52.
Cardano’s Key Metrics Soar
Cardano has shown significant progress across key metrics, as indicated by Token Terminal data. The numbers reflect a significant increase in market capitalization, trading volume and fees, highlighting the adoption of the Cardano blockchain ecosystem.
According to Terminal Token data, Cardano’s fully diluted market capitalization is approximately $29.80 billion, representing strong growth over the last 30 days. This value indicates the total value of all ADA tokens, including those not yet in circulation.
Furthermore, the circulating market capitalization, which only considers tokens currently available for trading, has also experienced a notable increase, reaching around $23.35 billion.
Furthermore, Cardano has witnessed a significant increase in trading volume over the last 30 days. O volume of business soared to approximately $27.96 billion, reflecting a 117.5% increase. This increase indicates increased market activity and a growing demand for ADA tokens.
Another noteworthy aspect revealed by the Token Terminal data is the substantial growth in fees generated on the Cardano network. In the last 30 days, fees totaled approximately US$506,070, demonstrating a significant increase of 36.5%.
When annualized, the fees generated by the Cardano blockchain reach around US$6.16 million, reflecting a notable growth rate of 5.2%. This means expanding the use of the Cardano network for various transactions and applications.
ADA is trading at $0.603, down 2.6% in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
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