Cardano’s ADA token surged by 12% in the last 24 hours, leading gains among major cryptocurrencies, even as Bitcoin (BTC) remained in a range-bound trading pattern that kept the broader market in check.
ADA’s price crossed the $1 mark, reaching a three-week high, while Bitcoin, Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) saw more modest gains of less than 2%. The CoinDesk 20 (CD20) index, a comprehensive benchmark of the largest digital assets, gained 1.57% overall.
Bitcoin’s price action is expected to stay within a narrow range until late January, with analysts predicting a more significant rally starting in February, coinciding with President-elect Donald Trump’s upcoming inauguration, as noted in a previous CoinDesk analysis.
Although ADA’s recent price jump didn’t have a clear catalyst, the Cardano network is preparing for several significant upgrades in the months ahead. Key developments include the introduction of a Bitcoin-focused decentralized finance (DeFi) platform and ongoing improvements to Cardano’s scalability, performance, and cross-chain interoperability.
Technical indicators suggest ADA could continue its upward momentum, with potential for a 30% rise. The token has recently broken above a key trendline that had marked a pullback since early December. CoinDesk analyst Omkar Godbole noted that the breakout, coupled with a bullish crossover on the MACD momentum indicator, signals the possibility of a retest of the $1.32 level, last seen on December 3.
Additionally, the 14-day Relative Strength Index (RSI), a widely-followed indicator of market momentum, is on the verge of crossing a descending trendline, further confirming the strength of the current price action.
In technical terms, the MACD indicator evaluates the difference between short- and long-term price averages to gauge momentum, with a bullish crossover often signaling an upward trend. The RSI measures the speed and magnitude of price movements, and its potential breakout above a trendline suggests sustained upward momentum for ADA.
