In the wake of the recent FOMC meeting, where the US central bank hinted at a potential trilogy of rate cuts in 2024, the cryptocurrency market has witnessed a surge in activity. Altcoins, with Cardano (ADA) at the forefront, are making waves as ADA experiences a remarkable 32% surge in its weekly chart.
In a notable divergence from its peers, ADA demonstrated resilience by swiftly absorbing selling pressure that briefly pushed its price down to $0.55 earlier this week. Presently, ADA is trading at $0.6327, sparking speculation about the altcoin’s potential for further gains, as per CoinMarketcap.
Cardano’s recent performance has been underscored by a decisive breakout from a resistance trendline, a move signaling a possible upward trajectory. If market conditions align with prevailing patterns, the post-breakout rally could target key levels, notably $0.737 and $0.87, indicating a potential 35% growth in the near future.
Analysts point to the Fibonacci retracement levels, suggesting that Cardano is still in the early stages of recovery. A breakout above the 35% mark could pave the way for ADA to close the gap to $1 and establish a foundation for the price to approach the 61.8% Fibonacci at $2.
Cardano’s Ecosystem Booms
Beyond the impressive price rally, Cardano’s ecosystem has seen a rapid increase in value locked in recent weeks. This surge is attributed to a growing interest in Ethereum alternatives like Solana and Avalanche, compelling crypto investors to explore alternative blockchains for returns and capital allocation.
The Total Value Locked (TVL) of all Cardano-based projects soared to over $440 million, surpassing a previous peak of $330 million recorded in April. The most significant growth occurred over the past week, with lending protocol Indigo and on-chain exchange Minswap experiencing a TVL surge of over 50%, reaching nearly $100 million each. The Djed stablecoin pegged to the U.S. dollar, witnessed a supply increase of over 45% in the past week, signaling a heightened interest from investors seeking to capitalize on yields.
Meanwhile, smaller protocols like LendFi and Spectrum Finance have seen a staggering 90% surge in value locked, indicating a willingness among users to take on riskier bets in the pursuit of potential gains.
Nevertheless, Cardano’s current trajectory and broader value-locked trends suggest a robust and promising future for ADA investors. As always, caution is advised, and market participants are urged to conduct thorough research and risk assessments before making any investment decisions.
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