The Cardano (ADA) coin hit a two-year low on December 30 at $0.239 but has since enjoyed a strong price increase that has propelled it to $0.264 at press time.
In the last twenty-four hours, the price of ADA has increased by around 5 percent, with a 24-hour trading volume of over $250 million.
A peek at the 1-day chart suggests that Cardano is not yet out of the woods. Since mid-August 2022, the ADA price has been in a decreasing trend channel. Since the beginning of December alone, the ADA coin has dropped 25%.
Despite the fact that the 50-day simple moving average (SMA) is a first objective at $0.291, ADA needs a further increase of over $0.33 to reverse the negative trend. Thus, today’s price action may signal a resurgence of bullish momentum. A few days ago, the MACD indicator displayed a bullish crossing, indicating that purchasing pressure is increasing.
The Relative Strength Index (RSI) is now at 46 and in the neutral zone, after having spent most of the second half of December in oversold territory.
Cardano has had a significant rejection at the important resistance zone of $0.266-$0.271. For ADA investors, the milestone might represent the first significant stride toward the $0.28 level. After that, the most significant resistance would be seen between $0.291 and $0.30. Only if Cardano achieves a breakthrough will the focus shift to a higher time period, allowing for a last strike against the bearish trend.
The expansion of the Cardano DeFi ecosystem may have offered some support for the ADA price. Total Value Locked (TVL) has increased to $52.53 million today, according to DeFiLlama statistics, after reaching a low of $48.95 million on January 1.
Several of the most prominent decentralized financial protocols on the Cardano network have shown an increase in use. All of the top seven decentralized applications (apps) have witnessed at least a 3.5% growth in TVL during the last twenty-four hours. Lending Pond not only leads the increase for this time with +21.5% but also for the past month.
The price increase may also be attributable to bigger ADA investors. According to WhaleStats data, significant BSC holders are also eager on purchasing Cardano (ADA). In the previous 24 hours, ADA purchases have ranked in the top 10 of the 4,000 biggest BSC whales. In addition, the biggest BSC whales have 19.9 million ADA, which is presently worth $5.19 million and accounts for 0.68 percent of the entire supply.