Cardano’s ADA Tops $1 as Bitcoin Remains Trapped in a Narrow Range

Cardano’s ADA token surged by 12% in the past 24 hours, outperforming other major cryptocurrencies, despite the absence of any specific trigger. This price jump occurred amidst Bitcoin’s (BTC) sideways trading, which has kept the broader crypto market relatively stable.

ADA reached $1, marking its highest point in three weeks, while Bitcoin, Ethereum (ETH), Solana’s SOL, and Dogecoin (DOGE) experienced more modest gains, each under 2%. The CoinDesk 20 (CD20) index, which tracks the top 20 cryptocurrencies by market cap, rose by 1.57% in total.

With Bitcoin’s price expected to remain in a range until late January, analysts are forecasting stronger price movements starting in February, driven by the incoming administration of President-elect Donald Trump, as previously highlighted by CoinDesk.

Though ADA’s recent spike had no immediate cause, the Cardano network is gearing up for several crucial upgrades in the coming months. These developments include the launch of a decentralized finance (DeFi) ecosystem based on Bitcoin and ongoing work to enhance the blockchain’s scalability, performance, and interoperability with other networks.

Technical indicators suggest that ADA could see further gains of up to 30%. The recent three-day price increase has broken through a trendline that had defined a four-week pullback since early December. According to CoinDesk analyst Omkar Godbole, this breakout, combined with a bullish crossover on the MACD (Moving Average Convergence Divergence) indicator, indicates that ADA may be on track to test the $1.32 level seen on December 3.

Furthermore, the widely-watched 14-day Relative Strength Index (RSI) is nearing a breakthrough of a descending trendline, reinforcing the bullish sentiment.

In technical terms, the MACD measures momentum by comparing average price data over time, and a bullish crossover signals potential for upward price movement. The RSI, which tracks the speed and change of price movements, suggests that ADA’s price could continue to rise if it breaks through the current trendline.