In recent days, Cardano (ADA) has caught the attention of many as it stands on the brink of hitting the $1 mark once again. After a tumultuous dip in the larger cryptocurrency market, ADA’s price experienced a strong 15% rebound, bringing a sense of optimism among its supporters.
Last Friday, the market faced a turbulent wave that resulted in over $1.42 billion in liquidations across various assets. It was a bumpy ride! Investor sentiments were rattled, but fortunately, the weekend brought a fresh wave of recovery, allowing several cryptocurrencies, including Cardano, to bounce back. ADA managed to surge upward, momentarily reclaiming the $1 level before easing back slightly.
A significant factor that boosted market sentiment was the recent release of the Federal Reserve’s favored inflation gauge, which turned out to be more favorable than anticipated. The personal consumption expenditures price index (PCE) for October registered a modest increase of only 0.1% and an annual rate of 2.4%. This news lifted some burdens from the market, especially following the Fed’s decision earlier in the week to lower its benchmark interest rate to a range of 4.25%-4.5%, marking the lowest level in two years.
On the trading front, ADA’s price had a rollercoaster moment after four consecutive days of decline. In Friday’s session, it hit a low of $0.763 before soaring to highs of precisely $1 in Saturday’s trading, showcasing the resilience of this cryptocurrency. As of the latest updates, ADA traded at $0.9579, reflecting a 14.05% increase over the past 24 hours.
The psychological milestone of $1 holds significance for Cardano. Breaking through this barrier could set the stage for further upward momentum, with potential targets of $1.34 and eventually $2 in sight. Conversely, support appears to be resting on the daily MA 50 at $0.877, which may provide a cushion should ADA experience volatility ahead of the $0.76 low.
A recent report from Messari, titled “State of Cardano Q3 2024,” offers insights into the growth of the ecosystem. Cardano’s Total Value Locked (TVL) in USD jumped 13.3% quarter-over-quarter to reach $231.6 million. Meanwhile, the stablecoin market cap also increased by 5.4% to $20.7 million, and the USDM stablecoin saw an impressive rise of 148.5% from its launch in March, peaking at $7.9 million. However, not all metrics were rosy; revenue saw a decline of 31.2% QoQ, influenced by a 15.9% drop in average daily transactions, now standing at 43,200.
As Cardano strives to maintain its momentum toward $1, the crypto community eagerly watches its progress. Will it break the barrier and surge even higher? Only time will tell, but one thing is for certain: ADA’s journey is one that many enthusiasts are passionately following.
