Cardano (ADA) Price Surges 40% as $240M TVL and Ethereum ETFs Emerge Bullish Catalysts
thecryptobasic.com 16 July 2024 14:23, UTC Cardano (ADA) has experienced a significant price surge, trading at $0.44, up 40% over the last ten days, fueled by several internal and external factors that are generating renewed investor interest and optimism.
Cardano Price Crosses $0.45 First Time in 10-Days
After having dropped to historic lows on Friday July 5, a positive shift in the US macroeconomic environment has provided a favorable backdrop for ADA’s recent rebound phase. Positive Non-Farm Payroll (NFP) and Consumer Price Index (CPI) data have bolstered investor confidence in the economic outlook, supporting the overall cryptocurrency market.
Furthermore, the anticipation of Ethereum ETFs expected to launch soon has spilled over into the altcoin market, including Cardano, as investors look for promising opportunities beyond Bitcoin and Ethereum.
The chart above shows how ADA price had slid to a 2024 bottom of $0.32 on July 5. But following the recent dovish macroeconomic reports, bulls have returned to the ADA markets with intensity.
On Tuesday July 16, ADA price briefly retested the $0.45 territory, marking 40% rebound over the last 10 days of trading. While Cardano price uptrend has mirrored the broader crypto market, on-chain data shows some internal bullish catalysts are also in play.
Cardano TVL Hits $240 Million Amid Market Rally
One of the key drivers of this price increase is the growing Total Value Locked (TVL) within Cardano’s decentralized finance (DeFi) ecosystem. According to DeFiLlama, TVL has risen dramatically, starting the year under 200 million ADA and now exceeding 682 million ADA.
Projects like the collateralized debt protocol Indigo and the decentralized exchange Minswap have both surpassed $50 million in TVL, reflecting robust adoption and engagement.
Valued at the current prices, the total value of assets deposited on the Cardano blockchain network has now crossed $240 million for the first time in 3-weeks. Typically, an increase in TVL is often considered a major bullish signal for the native token for a few reasons.
Firstly, Cardano’s TVL surge is a prime indicator that daily active addresses and transaction volumes have risen, indicating strong network engagement. Secondly, it also indicates cooling selling pressure as more tokens are being locked up. This declining market supply could further accelerate ADA price rally, if the bulls remain in the driving seat.
Cardano Price Forecast: $0.50 Target in Sight
Cardano (ADA) has seen a notable bullish trend, trading at $0.43 after a 40% increase over the last 11 days. This upward momentum is reflected in the strong performance of key technical indicators, suggesting that the cryptocurrency could soon test the $0.50 resistance level.
The daily chart shows a robust uptrend as ADA has managed to climb from a recent low of $0.31 to its current price, supported by a positive Accumulation/Distribution Line (ADL).
This indicator suggests a steady inflow of capital into ADA, highlighting growing investor confidence. The Parabolic SAR (Stop and Reverse) dots are well below the current price, indicating a sustained upward trend and providing a near-term support level around $0.35.
The Relative Strength Index (RSI) is also in a favorable position, currently at 56.36, which is just below the overbought territory. This suggests that there is still room for further price appreciation before ADA becomes overextended. The recent price action has seen ADA consolidate its gains around the $0.43 mark, creating a strong base for a potential breakout.
If ADA manages to clear the immediate resistance at $0.45, the next target would be $0.50. Beyond this level, the Fibonacci extension tool points to a potential rally towards $0.55, which could be a significant milestone for Cardano. Conversely, if the price retraces, strong support is likely to be found at $0.40 and $0.35, ensuring that any pullbacks are quickly contained.
