Cardano Soars: $1 Target In Sight After Explosive Break Out – Is Top 5 Soon?

Cardano Soars: $1 Target In Sight After Explosive Break Out – Is Top 5 Soon?

Cardano (ADA) broke out of its tight trading range on December 8 after bulls flipped the $0.45 psychological resistance. As a result, bears could not neutralize the bullish price action with the token rising as high as $0.58.

This increase made ADA the highest gainer out of the top 10 cryptocurrencies in the last 24 hours. According to CoinMarketCap, ADA’’s rise represents a 23.98% increase within the mentioned timeframe.

Apart from ADA, only Avalanche (AVAX) made a double-digit increase among the group. From the look of things, ADA seemed overbought as indicated by the Relative Strength Index (RSI).

Is the Next Target $0.75?

The RSI reading was 85.45 at press time, indicating that the price may reverse. However, if there is some sort of retracement, it might not go below $0.55 where there was some resistance during the uptrend.

However, the Awesome Oscillator (AO) has been increasing, suggesting that ADA’s upward momentum was solid. So, if the cryptocurrency pulls back and there is some level of buying pressure again, ADA may cross into the $0.65 region.

ADA/USD 4-Hour Chart (Source: TradingView)

Before ADA’s breakout, crypto analyst Ali Martinez had posted about the cryptocurrency on X. According to Martinez, ADA had shown signs of repeating its performance during the 2018 to 2020 cycle when the token went on a parabolic run.

The analyst, in his conclusion, noted that ADA might hit $0.75 by late December if the upward momentum continues.

#Cardano is on track! ✅$ADA price movement is echoing its 2018-2020 trajectory, minus the COVID-19 downturn. If this pattern holds, we could see #ADA punching through the $0.45 resistance soon.

What’s next? A potential rally to $0.75 by late December!

— Ali (@ali_charts) December 7, 2023

But for ADA to hit $0.75 or above, there needs to be intense buying pressure. Also, traders may need to look out for Bitcoin’s (BTC) price action. If BTC jumps to $47,000 before December ends as predicted in some corners, then ADA may rise $0.75 or inch towards $1. This is mainly because of the 0.96 correlation coefficient between both assets.

Cardano’s TVL Taps New High

However, price is not the only area in which Cardano has excelled. According to DefiLlama, Cardano has become the 9th most valuable project in terms of Total Value Locked (TVL). At the time of writing, the Cardano’s TVL was $379.64 million.

This value represents a 44.54% increase in the last seven days. Also, it is the highest value the metric has reached since March 2022. The TVL increase is a sign that market participants have been locking more assets in protocols under Cardano.

This also means that about 72,821 addresses now perceive the chain to be trustworthy while expecting significant yields from the deposited liquidity. Should the locked assets continue to increase, then Cardano may flip another chain to become number 8. But it faces stiff competition from Avalanche which is also doing well at the moment.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.