- Cardano price has silently flipped the key resistance level at $0.462.
- It has jumped by more than 100% from the lowest point in 2022.
- Cardano’s DeFi TVL has jumped to over $330 million.
Cardano (ADA) price has quietly made a bullish breakout above an important resistance level. The coin jumped to a high of $0.465 on Friday, its highest level since September 2022. It has more than doubled from its lowest point this year, bringing its total market cap to over $30.5 billion.
Why is ADA pumping?
Cardano price has jumped in the past eight straight weeks as investors rotate back to cryptocurrencies. This rally has coincided with the overall jump of other cryptocurrencies like Bitcoin, Ethereum, and Solana.
History suggests that Cardano does well when other cryptocurrencies are doing well. We saw this happen during the last crypto bull run in 2021. This rally happened because of the cheaper Cardano price compared to Bitcoin.
In today’s case, Cardano was trading at $0.463 while Bitcoin was hovering around $44,000. Therefore, because of the strong crypto correlations, most day traders would prefer buying Cardano than BTC at these prices.
Read more: How to buy Cardano.
Meanwhile, Cardano is slowly going up the Decentralized Finance (DeFi) ladder. The total value locked (TVL) in its ecosystem has jumped to more than $330 million, making it the eleventh biggest chain in the world. If this trend continues, Cardano will soon become a top-ten chain.
Cardano’s DeFi charge is being led by top dApps like Indigo, Minswap, Liquid, and MuesliSwap, which have over $17 million in assets each. The TVl is also broad-based, with over 15 platforms having a TVL of over $1 million.
Cardano’s futures open interest has also jumped steadily. It was standing at over $200 million on Friday, higher than the year-to-date low of less than $89 million. It has risen in the past few weeks straight.
Futures open interest is an important gauge that looks at the volume of outstanding positions in the market. A higher figure is usually a positive sign for an asset.
Cardano price forecast
The daily chart shows that the ADA price has been in a strong bullish trend in the past few weeks. Most recently, the coin crossed the important resistance level at $0.40, the highest swing on November 16th. This crossover validated the strong bull run.
Now, Cardano has flipped the final resistance at $0.462 into a support. This was an important price since it was the highest point in April. It has remained above the 50-day and 100-day moving averages. Therefore, while a short-term pullback is possible, the outlook for Cardano is bullish as buyers target the key resistance at $0.50.
