Cardano reaches highest price since 2022 and targets US$1.00

Follow CriptoFacil on
Google News CriptoFacilGoogle News CriptoFacil

The price of Cardano (ADA) extended its upward movement this Wednesday (20), reaching an appreciation of more than 10%. The digital asset has reached levels not seen since the beginning of May 2022, with on-chain and technical indicators pointing to the possibility of the uptrend continuing.

According to data from the Cardano network, there has been a significant increase in the metrics supporting the recent rally. The volume of transactions involving large investors, known as “whales”, for example, reached the highest level in six months.

Additionally, daily trading volume rose to $52.26 billion this week, a seven-month high, according to the Santiment platform.

Cardano's growth in the futures market

Another indicator that reflects increased investor interest in ADA is the growth of Open Interest (OI) in futures contracts. According to data from Coinglass, OI in futures markets rose from US$585.37 million last Monday (20) to US$717.22 million on Wednesday.

This marks a new annual record and the highest level since November 2021. This increase suggests the entry of new resources into the market and an optimistic stance among investors.

In the spot market, Cardano's price has advanced more than 140% since the beginning of November, trading at US$0.82 at the time of writing this article.

Cardano price chart over the last month – Source: CoinGecko

Technical analysts highlight that, if the asset manages to overcome the 61.8% Fibonacci retracement level at US$0.854, there is a possibility of reaching the psychological level of US$1.00, an important milestone for investors.

On the other hand, the Relative Strength Index (RSI), a momentum indicator, is at 77 on the weekly chart, well above the 70 threshold that indicates overbought. This scenario suggests a greater risk of correction. In this sense, experts warn of the possibility of a pullback if the RSI returns to levels below 70.

Despite the risks, the upward movement reinforces Cardano's attractiveness in the market, with a combination of robust metrics and growing interest from large investors.

Follow CriptoFacil on
Google News CriptoFacilGoogle News CriptoFacil