Cardano (ADA) appears set toreclaim the $1.20 mark in a matter of days. Data from CoinMarketCap shows a mild uptick in trading volume by 2.83% to $1.15 billion in the last 24 hours. Within the same time frame, ADA’s price fluctuated between a low of $1.07 and a high of $1.10, showing how well it maintains its price stability.
Market dynamics supporting Cardano surge
As of this writing, ADA is trading for $1.08, representing a 0.44% increase. This places the coin $0.12 away from reclaiming the $1.20 level. Analysts see this as achievable given the current market dynamics ofsoaring trading volume, Bitcoin’s performance and other ecosystem developments.
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In the past month, the $1.20 level has proven a critical resistance for ADA to breach. However, investors appear ready to support its rally over the resistance as they increase purchases of the coin.
Analysts foresee ADA achieving that goal if the current market momentum becomes sustainable. Additionally, other market forces that have supported ADA’s upward movement are the recent gains of Bitcoin (BTC), the leading digital asset.
In the past seven days, Bitcoin has maintained a steady rally to retest the $100,000 level. Cardano’s correlation to BTC implies that ADA could ride on the wave of Bitcoin’s surge to attain the elusive $1.20 mark.
Investor sentiment and ecosystem development
As noted, on-chain data shows increasing interest from active investors, which has helped push Open Interest to peak levels. Cardano investors are betting on the coin as futures traders commit to it.
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Meanwhile, the Cardano ecosystem has been busy as the community looks forward to the utility update promised by Charles Hoskinson, the protocol’s founder. Hoskinson has confirmed that Cardano will breach new heights amid plans for decentralized governance and Bitcoin DeFi pursuits this year.
