Cardano (ADA) has smashed the lull to experience a notable rise of over 5.5% to reach $0.53 at the time of writing. While broader market trends play a role, several key factors are fueling investor interest in ADA:

Riding the Market Wave

Cardano’s rise mirrors positive sentiment across the crypto market, with Bitcoin and Ethereum leading the charge. The recent approval of Bitcoin ETFs and anticipation for its halving event are contributing to bullishness. Travis Kling, CIO at Ikigai, points to the Federal Reserve’s revised rate cut policy as another factor impacting the overall market rally.

Cardano’s On-Chain Activity on the Rise

Cardano’s network activity is showing positive signs. The total-value-locked (TVL) has increased significantly, suggesting growing adoption and use of its smart contracts. Additionally, daily active addresses and transactions have seen a modest rebound, reflecting increased network engagement.

Benefiting from Solana’s Troubles

Solana’s recent network outage may have inadvertently driven investors towards Cardano. As a competing layer-one blockchain, ADA saw a 6.7% gain compared to SOL, indicating a potential shift in investor strategy seeking safer alternatives during volatile periods.

ADA/USD Technical Analysis

• Current Price: $0.53
• Resistance Levels: $0.55 (psychological level), $0.60 (previous resistance)
• Support Levels: $0.50 (recent low), $0.45 (psychological level)
• Moving Averages: 50-day MA is trending upwards, indicating potential bullish momentum.
• RSI: Currently at 66, suggesting ADA might be nearing overbought territory.