The price of Cardano (ADA) has reached the same levels it was last December, hinting at a possible big news on the horizon.
The recent crypto market rally triggered by Bitcoin has led to a significant spillover into altcoins. Cardano (ADA) has been one of the biggest beneficiaries, gaining 18% in the past seven days and 24% on the monthly chart.
The surge has pushed ADA close to price levels last seen in mid-December 2023. At the time, ADA reached a peak of $0.66, only to meet strong resistance that dropped it to the $0.466 low by the end of January.
However, the cryptocurrency has made a strong comeback, reaching as high as $0.6375 in the past 24 hours.
With this recovery, ADA has broken above the minor $0.62 resistance zone. Nonetheless, the altcoin has to convincingly close above this range to convert the resistance to support and pave the way for higher numbers.
Is Big News Coming for Cardano?
Market watchers expect such an outcome, as Cardano’s recent price action appears to be pointing towards investor speculation over a potential market-moving news.
Notably, ADA’s 18% jump in a week points to a growing trend of accumulation among market whales. These whales typically fill up their bags in anticipation of a potentially bullish report that could push an asset higher.
Some argue that the Cardano rally may merely be associated with the mini alt-season that has seen most altcoins gain significantly. However, the crypto market sometimes follows a pattern where coins grow significantly in the buildup to landmark news.
Most times the coin surges prior to the news reveal, only to struggle after the news hits the market. Analysts have not completely ruled out such a possibility for ADA, given how quickly the recent increase has occurred.
While there is no clear indication of the nature of the potential landmark development, the Cardano blockchain ecosystem has seen remarkable uptake in recent months, with DeFi TVL exploding by 645%.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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