- On April 16, the Cardano (ADA) price soared by around 2.37% on the daily chart, soaring its price from $0.2449 to $0.2514 with a market capitalization of around $9.09 billion.
- The cryptocurrency might see a major breakout in price after staying in a consolidation zone for a long period of time.
- Major expansion, such as the launch of the Midnight mainnet, has boosted on-chain activity on the network.
Despite small headwinds in the overall crypto market, the Cardano (ADA) price has experienced a small spike on the daily chart. On April 16, the Cardano price soared above $0.25 with a spike of around 2% on a daily chart.
However, the cryptocurrency is quickly falling from this peak with a small correction. As of now, the ADA price is currently revolving around $0.2466 with a spike of 2% in the last 24 hours, according to CoinMarketCap. The cumulative market capitalization revolves around $8.94 billion with a daily trading volume of $619.46 million.
What Is Fueling the Cardano Price Rally?
Cardano is preparing to break out of a descending channel pattern on the daily timeframe. The formation is now entering its final phase, with bullish momentum building. There is also price compression visible at the resistance level. If the breakout happens, the price is expected to aim for $0.33, followed by $0.43, then $0.52, and finally $0.68.
This week, Bitcoin (BTC) has soared above $75,000 in recent sessions after stable United States inflation data came out, along with a resilient job market. This has increased hopes for future interest rate cuts by the Federal Reserve.
Cardano is following a recovery pattern on its price charts, where it holds major support around $0.24 after testing resistance levels. The token is showing a short-term golden cross on the 2-hour timeframe, which shows potential upward momentum in the near term.
According to the experts, Cardano price is hovering above the clear support zone while preparing for a possible breakout if it clears the major trendline at around $0.245. This price pattern is similar to the previous phases, where consolidations have triggered small rallies.
According to TradingView, technical indicators are confirming that ADA is forming a strength. The relative strength index on the 14-period chart is around 67, which shows the higher buying pressure while remaining below the overbought territory above 70.
Moving averages are also confirming a bullish crossover on shorter timeframes. The MACD line crossing above the signal line is suggesting positive momentum. These indicators suggest that the current Cardano price upward momentum is coming from growing trading volume.
The current Cardano price movement also comes from bullish sentiment in the crypto market, where Bitcoin (BTC) soared above $75,000 this week.
In recent weeks, the Cardano network has witnessed major developments, which have increased the network usage. Daily active addresses have risen to approximately 12,000 per day. The growth in active addresses is showing genuine value transfers and decentralized applications activity on the blockchain.
Recent major developments within the Cardano ecosystem have had an impact on the token’s price. The Midnight privacy-based sidechain launched its mainnet in March and has advanced under a detailed 180-day roadmap outlined by founder Charles Hoskinson. This launch will target enhanced selective disclosure and private transactions to address major limitations in blockchain adoption. Also, Midnight is expanding its network with partnerships, such as Monument Bank, a regulated institution under the Bank of England.
The Cardano Foundation also partnered with Draper Dragon to launch the Orion Fund. This fund comes with an initial $80 million toward institutional projects and on-chain utility expansion. There are also major protocol upgrades, which include preparations for the Protocol 11 hard fork. This will enhance on-chain governance and decentralization.
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Source: https://www.cryptonewsz.com/cardano-price-soar-2-midnight-launch-update/
