Cardano price prediction: ADA slowly forms a Golden cross pattern

November 17, 2023 12:06 AM AEDT | By Invezz

Cardano price prediction: ADA slowly forms a Golden cross pattern — Image source: Invezz

DeFi ecosystem booms

Cardano, like other cryptocurrencies, has done well in the past few months. This rebound happened as Bitcoin price surged to an eighteen-month high of over $37,500. Bitcoin has more than doubled from its lowest point this year. Other coins like Avalanche, Solana, and Tron have also surged.

Meanwhile, data shows that Cardano’s DeFi ecosystem is doing quite well. According to DeFi Llama, the network’s Total Value Locked (TVL) has risen to over $260 million. In ADA terms, the TVL stands at over 688 million coins, a few points below the all-time high of 684 million.

A closer look at Cardano’s DeFi dApps shows that most of them have seen their TVL surge by double-digits in the past 30 days. Indigo’s TVL has spiked by over 66% to over $64 million while Minswap, Liqwid, Optim Finance, and Astarter have roared back by over 60%.

This trend could continue if the cryptocurrency industry continues doing well. In most cases, DeFi networks tend to thrive when cryptocurrencies are in an uptrend. Most of them saw their biggest TVL in 2021 when all cryptocurrencies were thriving.

Further, data in the futures market shows that open interest has been rising after bottoming at $89 million in September. It soared to a high of $162 million on Thursday, the highest point since June of this year.

Open interest in the futures market is an important figure because it shows the volume of outstanding derivative contracts for a financial asset. A higher figure is usually a sign that the asset is seeing more demand.

Cardano price forecast

ADA chart by TradingView

Turning to the daily chart, we see that ADA price has been in a slow bullish trend in the past few weeks. Along the way, the volume has also been rising modestly. Most importantly, the 200-day and 50-day moving averages are about to form a bullish crossover pattern.

In price action analysis, this pattern is one of the most popular bullish signs. For example, Bitcoin has surged hard recently after it formed its golden cross a few months ago. The Relative Strength Index (RSI) has also been rising.

Meanwhile, Cardano has flipped the crucial resistance point at $0.3800, the highest point on July 14th. Therefore, the outlook for Cardano is bullish, with the initial level to watch will be at $0.4620, the highest swing in April. This price is about 19.65% above the current level. A break above that level will push it sharply higher.

The post Cardano price prediction: ADA slowly forms a Golden cross pattern appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.