The Cardano price continued its recent recovery, reaching its highest since December 12 and 25% above its lowest level this year.
Summary
- The Cardano price has recovered in recent days.
- The rally is mainly due to the continued recovery of the crypto market.
- Technical data suggests that the token will rise 25% to the key resistance level at $0.5102.
The Cardano (ADA) token rallied as investors returned to the crypto market, with Bitcoin (BTC) rising above $92,000 and the valuation of all tokens reaching $3.2 trillion.
The rally coincided with rising futures open interest, which rose to a high of $856 million, the highest level since October 10, when liquidations soared above $20 billion. It is in a slow uptrend after bottoming on December 19 at $603 million.
Rising open interest on futures is a sign that investors are using more leverage or borrowed money to buy the currency. Rising open rates also coincided with positive funding rates, a sign that investors expect the currency to continue rising.
The Cardano price has also risen as traders await the upcoming Midnight mainnet launch, which will take place later this quarter. Charles Hoskinson and the team hope that Midnight will be the biggest part of Cardano’s ecosystem. It will leverage that zero-knowledge technology to help developers build privacy-focused applications.
Cardano is also working on the Leios upgrade, which will be released later this year. Leios will be a major upgrade that will introduce parallel processing, allowing it to process thousands of transactions per second, similar to other popular chains such as Solana and BNB Smart Chain.
Meanwhile, the developers are working on the Pentad proposal, which aims to introduce stablecoins, oracles and analysis tools into the network.
Cardano price technical analysis
The daily time frame chart shows that the ADA price hit a low of $0.3278 on December 31 and is currently at $0.4125. This revival coincided with that of Bitcoin and other altcoins.
The Relative Strength Index has risen above the neutral point of 50, while the Stochastic Oscillator has moved towards the overbought level.
However, the token remains below the 50-day and 100-day exponential moving averages and the Supertrend indicator. That’s a sign that the bears remain in control for now.
However, the token is likely to recover and possibly retest the key resistance level at $0.5100, which is around 25% above current levels. This target is the lowest level in February, April and June last year.
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