Cardano Surges Above $1 Mark with 11% Gain in 24 Hours
Cardano (ADA) has surpassed the $1 mark on January 3, rising over 11% in 24 hours, while other major cryptocurrencies like Bitcoin have shown minimal movement. ADA's performance is notable within the top 100 assets by market capitalization, with only Murad-memecoin SPX6900 (SPX) achieving a higher gain of 30%. Over the past week, ADA has increased approximately 20%.
The price increase lacks an immediate catalyst but aligns with upcoming protocol enhancements aimed at improving scalability, decentralization, and interoperability. Analysts indicate that technical factors primarily drive this momentum, highlighting the significance of resistance levels.
Cardano Price Analysis
On January 1, ADA/USDT broke out from a multi-week downward trendline established since December 2. After initially retreating to approximately $0.87, ADA validated the trendline breach through a retest.
Fibonacci retracement levels indicate a supportive technical environment, with the 0.236 Fib at $0.89 acting as a launch point post-breakout. The 0.50 Fib at $1.04 may serve as immediate support, while the 0.618 Fib ($1.11) represents the next challenge if upward momentum continues. Further targets include the 0.786 Fib ($1.20) and the 1.0 Fib ($1.3282).
From a moving averages perspective, ADA has risen above its 20, 50, 100, and 200 exponential moving averages on the four-hour chart. The crossing of the 20 and 50 EMAs above the 100 and 200 EMAs indicates bullish momentum. Trading volume has increased by 14.94% to $1.67 billion, supporting the breakout scenario.
The Relative Strength Index (RSI) on the four-hour timeframe shows a reading of around 80, indicating overbought conditions. While buying pressure remains strong, this suggests a potential for short-term pullbacks as traders may take profits.