Cardano’s ADA Surges 25.5% in Week, Boosted by Card Launch

Cardano’s native token, ADA, has experienced a significant price surge, climbing to $0.74, which marks a 25.5% increase over the last week and a 42% gain from its yearly low. This upward movement aligns with a double bottom formation, where the support level is around $0.50 and the neckline is at $0.76. The price has reached a critical resistance level, and a breakout could trigger a bullish movement towards $1.03.

The positive momentum for ADA was further boosted by the launch of the Cardano Card by Emurgo, one of Cardano’s founding entities. This multi-functional payment solution enables ADA to function as a spendable and yield-generating asset. The card offers features such as staking, DeFi earnings, collateralized loans, and allocates a portion of its profits to Cardano’s treasury, enhancing ADA’s utility and appeal to investors.

On-chain data reflects a surge in investor interest. Cardano’s total value locked (TVL) rose by 93% over the past week, reaching $438 million. This increase in TVL indicates heightened network activity, improved liquidity, and greater user participation, all of which support the recent price uptrend. The rise in TVL suggests that more capital is flowing into Cardano’s ecosystem, driving up the demand for ADA.

Market sentiment has also shifted positively. Cardano’s weighted funding rate turned positive at 0.012%, after staying negative earlier this month. A consistently positive funding rate indicates increased buying pressure from traders who expect the price to appreciate. This shift in sentiment reflects growing confidence in ADA’s short-term outlook.

Technical indicators also support a continued uptrend for ADA. The 20-day simple moving average is poised to cross above the 50-day moving average, forming a golden cross. This is typically seen as a bullish signal in technical analysis. If ADA manages to break above the resistance at the $0.76 neckline, analysts predict a possible increase up to the $1.03 level, which aligns with the 78.6% Fibonacci retracement level. This target is approximately 35% above the current price level.

In summary, Cardano’s ADA has shown strong signs of recovery, with a double bottom pattern and positive on-chain metrics driving the price surge. The launch of the Cardano Card and the shift in market sentiment have contributed to the bullish outlook for ADA. As the cryptocurrency continues to gain momentum, investors and traders will be closely monitoring its price movements and the potential for a sustained rally towards the $1 mark and beyond. However, it is important to note that the target of $3 to $5 is an analyst forecast and not a guaranteed outcome.