Ranked as the 9th largest cryptocurrency by market capitalization, Cardano (ADA) has faced a downward trajectory amid the prevailing bearish sentiment across the crypto market. Bitcoin (BTC), as the market leader, has spearheaded price corrections among leading cryptocurrencies.
Although ADA experienced a retracement of nearly 20% over the past week after hitting a 22-month high of $0.810 on March 14, there are signs suggesting a possible trend reversal. This change in momentum could propel ADA towards reclaiming the $1 milestone, a level it hasn’t reached since April 2022.
ADA is witnessing a surge in bullish momentum.
Crypto analyst “Trend Rider,” known for sharing insights on the social media platform X (formerly Twitter), has pointed out ADA’s transition from bearish to bullish trends in the market. Examining the two-week chart, significant moving averages are converging, indicating a shift towards a bullish stance as indicators transition from red to green.
The analyst suggests that this pattern closely resembles a previous occurrence observed just before ADA initiated a substantial bull run.
Should history repeat itself akin to the April 2021 bull run, during which ADA surged from $0.133 to its present all-time high (ATH) of $3.168 in less than a year, recording gains exceeding 2000%, a similar upward trend could propel ADA beyond the $1 threshold.
In the event of another 2000% price surge materializing, Cardano’s native token could potentially reach the $12.6 level, marking a significant quadrupling of its all-time high milestone.
As the market correction persists, Trend Rider has pinpointed crucial support levels that must be upheld to sustain the bullish framework. According to the analyst, the anticipated trend support for ADA is expected to range between $0.45 and $0.52.
Vital metrics for Cardano experience a significant surge.
Cardano’s key metrics, as reported by Token Terminal, demonstrate remarkable advancement. Data reveals a substantial uptick in market capitalization, trading volume, and fees, underscoring the expanding adoption of the Cardano blockchain ecosystem.
According to Token Terminal, Cardano’s fully diluted market capitalization stands at approximately $29.80 billion, showcasing robust growth over the past 30 days. This metric encompasses the total value of all ADA tokens, inclusive of those not yet in circulation.
Moreover, the circulating market capitalization, which accounts for tokens currently available for trading, has also witnessed a noteworthy surge, reaching approximately $23.35 billion.
Furthermore, Cardano has experienced a remarkable upsurge in trading volume over the last month. The trading volume has surged to approximately $27.96 billion, marking a substantial increase of 117.5%. This surge indicates heightened market activity and a growing demand for ADA tokens.
Another noteworthy revelation from Token Terminal data is the significant growth in fees generated within the Cardano network. Over the past month, fees have totaled approximately $506.07k, showcasing a significant increase of 36.5%.
When annualized, the fees generated by the Cardano blockchain amount to an estimated $6.16 million, demonstrating a notable growth rate of 5.2%. This underscores the expanding utilization of the Cardano network for various transactions and applications.