Cardano (ADA), known as the 9th largest cryptocurrency based on market capitalization, has recently faced a downward trend amidst the prevailing bearish sentiment in the cryptocurrency market. The leading market player, Bitcoin (BTC), has set the tone for price corrections in the top cryptocurrencies. Despite ADA experiencing a retracement of almost 20% in the past week after hitting a 22-month high of $0.810 on March 14, there are signs indicating a potential trend reversal may be on the horizon.
Analysts suggest that this shift in momentum could propel ADA towards reaching the $1 mark, a target it hasn’t achieved since April 2022. A prominent crypto analyst known as “Trend Rider” has shared insights on ADA’s market movement from bearish to bullish trends. Observing the two-week chart, key moving averages are aligning, signaling a potential shift to a bullish framework as indicators transition from red to green. Analysts speculate that this pattern resembles a previous scenario observed before ADA embarked on a significant bull run.
If history repeats itself and mirrors the April 2021 bull run, where ADA surged from $0.133 to its current all-time high (ATH) of $3.168 in under a year, registering gains exceeding 2000%, a similar upward trend could potentially push ADA above the $1 mark. Should another 2000% price surge materialize, it could propel Cardano’s native token towards the $12.6 level, marking a substantial quadrupling of its all-time high milestone.
While market corrections persist, Trend Rider stresses the importance of maintaining crucial support lines to sustain the bullish structure. According to the analyst, the trend support for ADA is expected to fluctuate between $0.45 and $0.52. Cardano has made significant strides in key metrics, evident from data sourced from Token Terminal, reflecting a notable increase in market capitalization, trading volume, and fees, underscoring the adoption of the Cardano blockchain ecosystem.
Token Terminal data reveals Cardano’s fully diluted market capitalization stands at around $29.80 billion, showcasing strong growth over the past 30 days. This figure represents the total value of all ADA tokens, including those yet to enter circulation. The circulating market capitalization, factoring in only tokens currently available for trading, has also witnessed a substantial increase, reaching approximately $23.35 billion.
Moreover, Cardano has observed a significant surge in trading volume, soaring to roughly $27.96 billion over the past month, signaling heightened market activity and a rising demand for ADA tokens. Another significant highlight from Token Terminal data is the marked growth in fees generated within the Cardano network. Fees in the past month totaled approximately $506.07k, demonstrating a considerable surge of 36.5%.
Cardano’s fee generation when annualized reaches an estimated $6.16 million, reflecting a growth rate of 5.2%. This indicates the expanding use of the Cardano network for various transactions and applications. Currently trading at $0.603, ADA has experienced a 2.6% decline in the last 24 hours. It is important for investors to conduct their own research before making any investment decisions in the volatile cryptocurrency market.