Cardano (ADA), a prominent smart contract-focused cryptocurrency, has demonstrated a remarkable recovery, marking a significant shift in its market trend. Since the end of the 2021 bull run, ADA has been experiencing a bearish trend. However, closing the fourth quarter of 2023, it has shown a bullish outlook, registering an impressive gain of over 170%.
This surge in ADA’s value is attributed to increased liquidity and trading volume across various centralized exchanges and decentralized financial (DeFi) platforms. A notable rebound in open interest has been observed, climbing from below $100 million in October of the previous year to over $300 million recently.
Cardano Threatens Ether Dominance
Cardano’s ambition to challenge Ethereum’s dominance in the DeFi ecosystem is gaining momentum. With its focus on facilitating the mass adoption of smart contracts, Cardano has accumulated approximately $424 million in Total Value Locked (TVL), a significant achievement still trailing behind Ethereum’s $29.9 billion. The growing influence of Cardano’s DeFi protocols and meme coins, particularly Snek (SNEK), has been a topic of interest in the crypto community.
ADA’s Short-Term Price Outlook
Regarding ADA’s short-term price trajectory, technical analysis suggests a potential upward movement. ADA’s price on the daily timeframe has been forming an ascending triangle pattern since the December macro breakout. According to Captain Faibik, a renowned crypto analyst on the X platform, ADA’s price could target 80 cents if it successfully closes above the upper border of the bullish pennant formation.
Supporting this bullish perspective is ADA’s weekly Relative Strength Index (RSI), which has stayed above the 70 level for the first time since 2021. Furthermore, from an Elliott wave perspective on the weekly timeframe, ADA’s price appears to be gearing up for a third bullish rally, potentially following in the footsteps of Bitcoin’s breakout. This combination of technical indicators and market dynamics paints an optimistic picture for ADA’s future performance.
