ADA looks set for a bullish reversal after breaking key resistance.
Cardano’s ADA has rallied by over 20% in the last 24 hours. It is the highest gainer amongst the top 10 crypto assets by market cap as the crypto markets go green.
While many see this rally as unexpected, it bears mentioning that, as reported at the end of December, crypto analytics platform Santiment Feed suggested that the crypto asset was undervalued, citing whale accumulation and seller exhaustion. As reported on Friday, as the asset posted impressive price performances, this whale accumulation has continued well into the new year, with whales accumulating over 200 million ADA since the start of the year.
ADA has broken its months-long downtrend after breaking the price resistance at $0.30, a level highlighted by Duo Nine in a recent report as key to determining if the asset’s price action was the start of a bullish reversal or a relief rally. Eight CEO Michaël van de Poppe shared Duo Nine’s sentiments yesterday. The asset is trading at the $0.3322 price point at press time.
Request 01 – $ADA
This one looks beautiful, but it's approaching resistance.
Just a relief rally in a downtrend, so far.
If it wants to break that downtrend, flipping $0.30 is key.
Otherwise, I'd be looking at $0.2675 and $0.25 for potential plays. pic.twitter.com/KkatX96dmN
— Michaël van de Poppe (@CryptoMichNL) January 8, 2023
Unsurprisingly, ADA’s latest feat has not gone unnoticed by crypto Twitter. ADA is trending with over 14,000 tweets.
It is worth noting that the Cardano network is scheduled to launch Djed, its algorithmic stablecoin, on the mainnet this month. Amongst other things, developers propose that it will be used for gas fees on the network and purchasing NFTs, thanks to partnerships established by the stablecoin issuer COTI. It promises to attract liquidity to the ecosystem and boost Cardano’s decentralized finance activity.
Recall that ADA decentralized apps recently achieved a new milestone by completing 16 million transactions, with volumes reaching 5.8 trillion ADA, defying ghost chain, zombie chain, and vaporware narratives.
Meanwhile, Cardano’s Charles Hoskinson is launching a hospital in February that will accept ADA payments.