According to CoinDesk, Cardano's ADA token experienced a significant surge, rising 12% in the past 24 hours, leading gains among major cryptocurrencies. This increase occurred as bitcoin (BTC) remained in a rangebound trading pattern, influencing the broader market dynamics. ADA surpassed the $1 mark, reaching a three-week high, while other major cryptocurrencies like ether (ETH), Solana's SOL, and dogecoin (DOGE) saw gains of less than 2%. The CoinDesk 20, an index tracking the largest tokens by market capitalization, increased by 1.57%.
Traders anticipate that bitcoin's price will continue to trade within a range until late January, with potential gains expected from February onward. This outlook aligns with previous analyses by CoinDesk, which noted that market movements could be influenced by political developments, such as the inauguration of President-elect Donald Trump. ADA's recent price increase did not stem from any immediate catalyst, but the protocol is poised for several fundamental advancements in the coming months. These include the development of a bitcoin-centric decentralized financial ecosystem and ongoing efforts to enhance Cardano's scalability, network performance, and interoperability with other networks.
Technical analysis suggests that ADA could see further gains of up to 30% in the near future. CoinDesk analyst Omkar Godbole highlighted that ADA's recent three-day rise has pushed prices above a trendline that characterized a four-week pullback from early December highs. This breakout, coupled with a renewed bullish crossover on the momentum indicator MACD (Moving Average Convergence Divergence), indicates the potential for a re-test of the December 3 high of $1.32. Additionally, the 14-day RSI (Relative Strength Index) is approaching a descending trendline, which could validate the bullish price action. In technical terms, a bullish crossover on the MACD suggests a potential price increase, while the RSI measures the speed and change of price movements, with a break through a trendline indicating continued upward momentum.