- Cardano price has jumped to a multi-week high.
- This trend is because of the performance of MinSwap.
- The overall trend is bullish but a small pullback can’t be ruled out.
Cardano price has rebounded and moved above a key resistance level as investors move back to Bitcoin and other altcoins. The coin rose to a high of $1.13, which is the highest it has been since February 11. As a result, ADA has jumped by over 50% from its lowest level this year.
MinSwap is the catalyst
The main reason why the Cardano price has jumped in the past few days is a new decentralized finance (DeFi) platform known as MinSwap. It is a network built using Cardano’s architecture that has grown significantly popular in the past few days.
It offers a multi-pool exchange that enables people to buy and sell cryptocurrencies. People who add liquidity to the network are then given liquidity pool tokens that represent a certain share of the total pool. In the past few weeks, some of the most popular pools are ADA-MIN, ADA-DANA, and ADA-MELD among others.
According to DeFi Llama, MinSwap has overtaken SundaeSwap to become the biggest app built in Cardano, This happened as the total value locked in its ecosystem jumped by over 80% in the past seven days to over $195 million.
Therefore, the Cardano price is rising as investors predict that other developers will accelerate building applications in the network. Another positive thing for Cardano is that it has an army of followers, who will always love it no matter what. For example, according to Staking Rewards, Cardano has a staking value of over $27 billion, which is notable since it has a market cap of over $36 billion.
Still, as I have written before, the road ahead for Cardano will not be easy. For one, we now have platforms like Avalanche and Solana that are significantly ahead of Cardano. Most importantly, Ethereum’s merge is nearing, which will lead to a faster and more reliable ecosystem. As such, there is a possibility that more developers will remain in the network.
Cardano price prediction
In my last ADA price forecast, I said that the coin was ripe for a bullish breakout. This view was accurate considering that the coin has soared to a multi-week high. The coin has managed to move above the upper side of the descending channel shown in black.
The coin has managed to move above the 25-day and 50-day moving averages and the two are about to have a bullish crossover. Therefore, the path of the least resistance for the coin is upwards, although I expect that a short pullback will happen soon.
