Cardano's ADA surges 3.9% in 24 hours, driven by Cardano Card launch

Cardano's price has formed a double bottom pattern, indicating a potential recovery above $1 in the coming weeks. This development is supported by bullish advancements and on-chain strength. Over the past seven days, Cardano (ADA) reached an intraday high of $0.74, marking a 25.5% increase and a 42% rise from its year-to-date low. As of the latest update, ADA has gained 3.9% over the past 24 hours, with a market capitalization of $27 billion.

ADA's price surge today was driven by Emurgo, one of Cardano’s founding teams, announcing the launch of the Cardano Card. This multi-functional payment and finance tool aims to make ADA a spendable, yield-generating asset. Beyond payments, the Cardano Card will enable users to stake ADA, earn yields from decentralized finance (DeFi) and real-world assets, access collateralized loans, and direct a portion of the card’s profits into the Cardano treasury.

In addition to this announcement, on-chain metrics for ADA have also shown positive trends. Data indicates that the total value locked (TVL) in ADA across all protocols has increased by 93% over the past week, suggesting rising capital inflows and renewed investor interest. Since the beginning of July, the total TVL within Cardano’s DeFi protocols has climbed by 28%, reaching $438 million. This rise in TVL often signals increased network activity, better liquidity, and higher user participation, all of which can support a price increase as demand builds.

Furthermore, data from CoinGlass shows a shift in sentiment, with Cardano’s weighted funding rate climbing to 0.012% after being negative earlier this month. A consistently positive funding rate typically means more traders are betting on the price to go up, reflecting stronger confidence in its short-term outlook.

On the 1-day/USDT price chart, ADA is approaching a crucial resistance level. A break above this level could lead to a sustained rally in the short term. Notably, ADA has been forming a double-bottom pattern since March, with support at $0.50 and a neckline at $0.76. This pattern is typically seen as a bullish reversal signal. Additionally, the 20-day simple moving average appears poised to cross above the 50-day moving average, a formation known as a bullish golden cross in technical analysis.

If ADA manages to break above the neckline at $0.76, the projected target would be the $1.03 level, which also aligns with the 78.6% Fibonacci retracement level. This target is 35% above the current price level. Analysts believe that ADA’s rally could be the beginning of a broader bull run, with some projecting more ambitious targets in the $3 to $5 range.