Why Cardano soared 10% in 1 day

Cardano (ADA) has a 2,000% year-on-year profit starting from less than $1, continuing to outperform Bitcoin, Ethereum and other cryptocurrencies in the top 5 by market capitalization. As of press time, the transaction price of ADA is $2.30, and the profit on the daily chart is 9.8%.

ADA rebounded on the 4-hour chart. source: ADAUSDT transaction view

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After the general market sentiment, Cardano seems to be preparing to rise further, with an important resistance at $2.5. As shown in the Material Indicators in the figure below, ADA (blue price) rebounded sharply from the low point of the current range.

Source: Material Index

However, the price is at a seemingly one-week support level in a low time frame, and if the cryptocurrency market falls further, it is prone to more downsides. On the upside, the trend of ADA turned from resistance to support at $2.5 in order to break through the new price target near the $3 area.

Other data provided by Material Indicators shows that Cardano’s rebound was mainly driven by large investors (shown in purple in the figure below), and most trading orders indicate increased buying pressure.

Source: Material Index

On the other hand, retail investors have been dumping ADA to climb to current levels. Most of these investors may profit at these levels, but their selling pressure has obviously been eased by buying orders of US$100,000 to US$1,000,000.

A bullish case for Cardano (ADA)

As indicated by the increase in the number of contributions recorded on GitHub, the Cardano ecosystem remains the fastest growing ecosystem in the crypto space. In addition, its developer IOHK recently announced the progress of major network improvements.

On GitHub, IOHK has created a compilation that lists the “basic” items of the ecosystem. The list covers multiple areas, with hundreds of projects working together for the benefit of Cardano.

Rear Alonzo deploys its smart contract function through Hard Fork Combinator (HFC) event, The ecosystem has entered a new era, and many investors are betting on its growth.

Related Reading | Is Cardano in a losing battle with Solana?

In addition, IOHK recently launched a beta version of the backend of the network Plutus application to enable it to be integrated into the Cardano wallet. As a platform that allows users to easily deploy financial contracts, the company has invited developers to try it out. IOHK says:

This marks an important milestone in the journey of DeFi on Cardano, simplifying the #smartcontracts integration on the chain and smoothing the route of dApp deployment.

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