Cardano (ADA) Rallies 8% In The Last Day, What’s Next?

One of Ethereum’s strongest competitors, Cardano (ADA), is among the top-gaining coins today, with an 8% price increase on the last day. This comes after several days of a bearish slump in prices across the market, causing ADA to lose most of its previous week’s gains.

The market rebounded today as the bearish trends have dissipated with a nearly 9% 24-hour increase in the global crypto market cap. Cardano previously saw consecutive losses last week, but ADA added an 8.58% 24-hour price gain as the market started recovering. The latest price action could be courtesy of the improvement in the global crypto market. 

There is a significant improvement in the cryptocurrency market today as most coins have recovered some of their lost gains. The global cryptocurrency market saw a massive 8.50% gain against last week’s bearish records. Even the two largest cryptocurrencies, Ethereum and Bitcoin, saw massive declines last week. Both coins have now recorded notable price increases over the past 24 hours.

What’s Contributing To ADA’s Price Action?

ADA also witnessed a surge in trading volume amid the latest price improvement. According to data on CoinMarketCap, ADA has recorded a 64.46% increase in trading volume at the time of writing. A surge in trading volume often reflects investor sentiment on a cryptocurrency. Therefore, ADA’s 64% rise in trading volume could signify an increased network activity.

However, the Fear and Greed Index remains neutral at 49, suggesting that investor sentiments have not improved much. But, as of yesterday, March 12, the Fear and Greed Index was 33, showing fear in the market and reflecting nearly a 4% loss in ADA price. Today’s 49 indicates a notable improvement in investor sentiment, evident in the latest price rally across cryptocurrencies, including ADA.

Meanwhile, the Cardano network developers have not relented in launching improvements on the blockchain. According to a tweet by Input Output Hong Kong, the firm behind the Cardano blockchain, Cardano saw some key development updates in March.

As of last week, the Daedalus team finished implementing their support for Ledger v.6.0.3 and added collateral support for CIP-30 in the Lace desktop. On March 10, the development team also updated multiple components to use the Marlowe Runtime protocol, which would improve withdrawals and related queries for Smart Contracts on Cardano. A few other developments that would scale the overall performance of the Cardano network and Smart Contracts deployed on it also went live last week.

These updates have the potential to support ADA price rallies since they would improve the network performance while ensuring an excellent user experience.

ADAUSD price chart

What To Expect For ADA Price?

The crypto market is still in expectance of the February US CPI data report, which the Bureau of Labour Statistics will release on March 14. Some analysts speculated that the coming CPI data would be higher than expected and may cause many crypto prices, including ADA, to decline. 

At press time, ADA is trading at $0.3382. However, Coincodex made a bullish prediction for Cardano (ADA) in the coming days. According to Coincodex’s price prediction, ADA price would increase by 12.53% and reach $0.379324 by March 18, 2023. • 2023