The increase in the price of Cardano matches the expectations of the community, who want the network to be the most scalable. Despite the widespread losses in the cryptocurrency market, the bullish trend remains intact as a sign of the strength of ADA.
In recent days, Cardano (ADA) became the 4th largest cryptocurrency after its price exceeded the value of Binance Coin (BNB).
ADA is currently trading at around USD 1.5 and accumulated a profit of 5.6% in the last 24 hours. The recent jump in its price brought its market capitalization around USD 8 billion.
How Cardano Reached 4th Place in the Cryptocurrency Market
The significant increase in the price of ADA has matched the expectations of its community. They want the Cardano network to become the most scalable in the ecosystem and far surpass Ethereum.
The recent implementation of the Shelley update has contributed to increasing positivity due to improvements in staking and delegation.
The continued improvement of this network seeks to make Cardano a leader among decentralized networks.
The next update, Alonzo, which went into a testing phase at the end of May, can now run smart contracts.
The positive outlook for this cryptocurrency has caused the staking of more than USD 30,000 million on the Cardano network. This amount, equivalent to about 71.69% of the total circulation of ADA, seriously affects its shortage.
What Is the Usefulness of Staking Cardano?
Staking Cardano allows securing the network so that users can lock their coins in the protocol.
While the Cardano (ADA) network has the highest staking value in the market, Ethereum is the 2nd largest. The latter has around USD 12.2 billion locked in staking.
Additionally, cryptocurrency investment trust Grayscale accepted ADA, making it the 3rd largest holding.
The increasing demand on a network where users can lock their coins causes the price of ADA to increase in the medium/long term.
Technical Analysis of the Price of the ADA Cryptocurrency
The weekly price chart of Cardano shows the same strength as its infrastructure. Despite all the widespread losses in the market, the bullish trend has remained intact.
In recent days, the ADA price rejected the support at USD 1.3120, suggesting the possible bottom of the slide. The constant rejection of low prices indicates the exhaustion of sellers and the possibility of new highs.
This week, the price of Cardano has tried to escape above a descending diagonal resistance during the correction. If it manages to do so, that will be a sign that there will be a bullish resumption.
The Key Levels for the Price of Cardano
The daily price chart of Cardano (ADA) indicates that there has been a short-term bullish trend.
The price of the crypto asset is currently challenging immediate resistance at USD 1.42. Breaking that resistance would mean a significant recovery, but holding resistance at USD 1.80 could cause problems in the short term.
Holders can consider selling if the price breaches the support at USD 1.32. However, the buying pressure around the USD 1.00 area could help reverse the bearish intention.
By Alexander Salazar
