The number of ADA coins in circulation has reached 80% of the total supply cap of 45 billion, creating a sense of scarcity in the market. This scarcity, coupled with recent price movements, has drawn attention to Cardano’s native cryptocurrency, ADA. Breaking the $1 mark, ADA has experienced a surge in demand, leading to a 30% price hike and signaling potential for further gains. With a limited supply and growing interest, ADA has become a focal point for both traders and investors.
In recent market performance, ADA has seen a noteworthy rise, gaining nearly 20% in the past week alone. This growth pushed the price from $0.843 to $1.082, marking an impressive 30% surge. This surge broke through a major resistance trend line, indicating the start of a robust recovery phase.
Technical indicators paint a promising picture for ADA. The 4-hour RSI has moved into the overbought zone, reflecting an increase in buying pressure. A potential golden crossover between key EMA lines is in sight, further boosting optimism for additional gains. As the price approaches the 78.60% Fibonacci level, traders are keeping a close watch.
A key area to observe is the $1 psychological level. A potential retest could present an enticing buying opportunity. On the other hand, a breakout rally might push the price towards the 1.618 Fibonacci level at around $1.80, which could pique the interest of both short-term and long-term investors.
Cardano’s growth potential is fueled by more than just technical performance. Upcoming developments in the project have been boosting confidence among investors. Plans to integrate a Bitcoin-focused decentralized financial system would allow Cardano to leverage Bitcoin’s liquidity, a move that could potentially revolutionize the DeFi space and attract new market participants.
Institutional interest in Cardano continues to grow as well. Recent approvals of Bitcoin ETFs have increased confidence in blockchain projects like Cardano. With more altcoin ETFs expected in 2025, Cardano’s appeal to large-scale investors is likely to be further enhanced.
The high circulation percentage combined with a capped supply underscores ADA’s rarity. This scarcity, alongside ongoing upgrades and market enthusiasm, places Cardano in a strong position for potential long-term success. Whether ADA’s performance will be marked by a retest or a breakout rally remains a key narrative in the cryptocurrency market.
