Cardano’s ADA Token Jumps 12% to Exceed $1 Amid Bitcoin Trading
Cardano’s ADA token increased 12% in the past 24 hours, reaching a three-week high above $1, while bitcoin (BTC), ether (ETH), Solana's SOL, and dogecoin (DOGE) saw gains of under 2%. The CoinDesk 20 index rose 1.57%.
Traders anticipate that BTC will remain rangebound until late January, with potential gains expected from February as President-elect Donald Trump takes office, according to previous CoinDesk analysis.
ADA's price increase occurred without an immediate catalyst, but several fundamental developments are anticipated, including a bitcoin-centric decentralized financial ecosystem and improvements in Cardano’s scalability, network performance, and interoperability.
Technical analysis indicates possible further gains of up to 30% for ADA. CoinDesk analyst Omkar Godbole noted that ADA's recent rise has moved prices above a trendline indicative of a four-week pullback. The breakout and bullish crossover on the MACD suggest a potential re-test of the December 3 high of $1.32.
The 14-day RSI is also nearing a descending trendline, supporting the bullish price action.
In technical analysis, MACD (Moving Average Convergence Divergence) indicates momentum through average prices over time, with a bullish crossover suggesting a potential price increase. RSI (Relative Strength Index) measures the speed and change of price movements, with a trendline breakthrough indicating continued upward movement.