- summary:
- Cardano price has been trading around the $1.00 psychological level for the second day in a row and key metrics are calling for further gains.
Cardano price retested the $1 mark on Friday as the broader cryptocurrency market remained in an uptrend for the second day in a row. The coin is trading at $1.00 at the time of writing, with daily gains of 1.7%. The return to the psychological mark has created a strong sentiment that will likely help the currency stay in the uptrend.
ADA token recorded a trading volume of $1.21 billion over the past 24 hours, equivalent to a 28% rise. This adds weight to the bullish outlook for the currency’s trajectory. The coin is also subject to potential approval from the European Training Foundation (ETF) and this could add strength to its bullish momentum in the coming weeks.
However, Cardano bulls will need to break the $1.01 resistance level, which corresponds to the coin’s volume-weighted moving average (VWMA) on the daily chart, and turn it into a support level. However, the bullish outlook could be invalidated if Cardano price falls below the $0.900 level, at the neckline of the double top pattern.
The Cardano chain also recorded progress in its DeFi ecosystem, with total volume locked (TVL) growing by 3.25% in the past seven days. Cardano has arguably been weak in the DeFi space compared to peers like Ethereum and Solana. However, higher DeFi performance is creating more utility, which bodes well for Cardano’s price. Also, Cardano’s daily active addresses were relatively strong last week, ranging between 33,227 and 50,828.
Cardano price forecast
Cardano price is trading at $0.986 and an uptrend will prevail if buyers keep the move above this level. This will likely send the coin rising to meet the first resistance at $1,013. Stronger momentum will break above this level and may face first resistance at $1,030.
On the downside, ADAUSD will swing to the downside if it drops below $0.986. This will likely create the first support at $0.970. A break below this level will invalidate the bullish narrative. Meanwhile, the momentum generated from this level may break and potentially test $0.950.
