Cardano (ADA) Reclaims Position as Third Largest Crypto by Market Cap
Aiswarya Gopan • 2 min read
The reversal in the market sentiment towards cryptocurrencies has powered a surge in Cardano (ADA), sending it back to the third position based on market capitalization, after it slipped down to the fourth rank earlier this week. At the time of writing, ADA/USD is trading at around $2.23.
Rising Adoption, Upcoming Cardano Summit Support
While the bullish reversal was triggered by an uptick in risk sentiment across global financial markets, Cardano’s surge received enough support from numerous fundamental developments as well. One of the most notable is the blockchain’s SundaeSwap reciving funding from Double Peak Group which joins other players like Alameda Research, cFund.vc and Darrenlautf in raising $1.3 million in seed funding for Cardano’s first decentralized token exchange.
The ADA token turns even more attractive as an investment over news reports about Cardano’s first DeFi ecosystem P2P Finance entering a strategic partnership with Charli3 – the blockchain’s first decentralized oracle network. This agreement will enable P2P Finance to provide data from real world price feeds in a secure and scalable manner without worrying about market volatility affecting data accuracy anymore.
Meanwhile, buzz around the upcoming Cardano Summit could also keep ADA supported in the coming sessions as investors eagerly look forward to announcements about new collaborations and projects the Cardano Foundation could announce at the event. The summit will also serve to heighten engagement among the blockchain’s community of users through various promotional events, news announcements, exclusive content and even limited edition NFTs up for grabs.
Institutional interest in Cardano could also be driven higher by news of 21Shares – a global leader in cryptocurrency ETPs, announcing a new Cardano ETP being listed on Deutsche Bourse XETRA. The Cardano ETP (ADA) is slated to be Europe’s only traded Cardano ETP and should increase investor confidence in the cryptocurrency in the coming sessions.
Key Levels to Watch
Technical analysis of the 4-hour price chart of ADA/USD reveals a bullish bias among the smaller moving averages and leading technical indicators MACD and momentum. However, the larger MAs as well as the Stochastic are showing some interest among sellers at the moment too.
Cardano’s price is sitting above the support at $2.16 but has some catching up to do to get to the pivot point at $2.37. If the buying pressure increases, we could see the price surge past this level, following which the focus will shift to the immediate resistance at $2.49.