The total value locked on the Cardano ecosystem has more than tripled in the past three weeks to hover about $604 million today.
Amid the ongoing altcoin awakening following the recent Bitcoin BTC $112 269 24h volatility: 0.9% Market cap: $2.24 T Vol. 24h: $37.82 B pump close to $100K, Cardano ADA $0.87 24h volatility: 0.0% Market cap: $31.65 B Vol. 24h: $1.55 B has emerged as a top contender. The large-cap altcoin, with a fully diluted valuation of about $44 billion and a daily average traded volume of around $3 billion, has surged more than 200 percent in the last three weeks to trade about $0.99 on Wednesday, during the early New York session.
From a technical analysis standpoint, Cardano’s weekly Relative Strength Index (RSI) has surged above the 70 percent level for the first time since a failed attempt earlier this year. Consequently, Cardano price is on the cusp of breaking out of a megaphone chart pattern, with the next major target around its all-time high.
In the meantime, the ADA price is aiming for at least a 50 percent rally towards the upper border of the megaphone structure, which also coincides with the resistance level of around $1.5. Moreover, the ADA/BTC pair has significantly rebounded in the past three weeks, with the macro RSI pumping above the 70 percent level for the first time since 2021.
In case of a sudden altcoin correction, ADA price will find a solid support level above 79 cents, which previously acted as a robust resistance level.
Major Factors Fueling Cardano (ADA) Price Up
As Coinspeaker pointed out, the Cardano bullish outlook is heavily bolstered by the notable network developments in the past few years. Consequently, Cardano’s total value locked (TVL) has grown to a new all-time high (ATH) of above $600 million and a stablecoins market cap of over $22 million.
Some of the top-tier DeFi projects that leverage the Cardano network include the Liqwid lending platform, Minswap DEX, and Indigo CDP, among many others. The Cardano network recently achieved a new level of decentralization following the introduction of the Chang hard fork, which enhanced on-chain decision-making for all ADA holders.
However, the Cardano community remains highly inclined to follow Charles Hoskinson, who is actively pursuing working with the Donald Trump administration to ensure the implementation of clear crypto regulations. Additionally, the Cardano network is likely to collaborate with other major blockchains including XRPL, and Stellar XLM $0.38 24h volatility: 3.4% Market cap: $12.03 B Vol. 24h: $420.36 M , among others in expanding the Web3 ecosystem.
#Cardano whales bought over 130 million $ADA during the recent price dip! pic.twitter.com/VHg93o3WP5
— Ali (@ali_charts) November 27, 2024
Consequently, the Cardano network has registered a significant growth in on-chain activities led by whale investors. As a reputable prop-of-stake blockchain, the Cardano network has nearly half of its total supply, amounting to about 23 billion staked to secure the ecosystem.
According to on-chain data analysis provided by Santiment, Cardano whales purchased 130 million more units and currently hold 3.2 billion ADA units.
The heightened adoption of ADA by long-term holders is a huge boost for the altcoin’s long-term growth prospects.
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