Over the past few days, investor interest in the price of Cardano (ADA) has increased as its competitor’s zkEVM went live on Tuesday after completing its beta phase. This renewed attention for the Cardano network has created a significant rise in the price of ADA, resulting in widespread attention and an increased influx of investors. As Cardano price continues to break its resistance levels, a potential upside is expected to be brewing on the horizon this week.
Cardano shows signs of independence
Cardano (ADA) is showing signs of independence from the broader crypto market, underscoring its strength as an individual asset. This separation from major cryptocurrencies such as Bitcoin and Ethereum speaks to ADA’s unique price trajectory and persistent uptrend, which has been ongoing for over a month.
Notably, Cardano has seen a price surge of more than 10% in the past two days alone, further cementing its position as a standout asset in the crypto industry. This decoupling is an important step, reflecting the maturation of the Cardano ecosystem and growing investor confidence in its long-term potential and usefulness.
Data from Santiment indicates that the decoupling of Cardano is not a temporary phenomenon. Large ADA holders with 10,000 coins or more have amassed a total of 1.03 billion coins in the past five months, signifying a 3.3% increase in their holdings.
Additionally, Cardano’s steady upward trend over the past month reflects robust bullish sentiment among investors, validating the project’s long-term view and approving its ability to deliver on its commitments.
ADA Price Surpasses $0.4 This Week
ADA price saw significant profit taking near the $0.36 mark as the 200-day and 55-day simple moving average (SMA) were nearby in this region. However, the bulls managed to overcome this hurdle, making further gains more achievable, with the $0.4 resistance level now within reach.
However, investors may face downside risk if they fear that the zkEVM launch could collapse, similar to the failed Arbitrum airdrop. This is exemplified by the recent Arbitrum selloff, which happened after rumors of hackers fleeing with tokens worth $500,000.
At the time of writing, the price of the Cardano token is trading at $0.385, with a gain of almost 8% in the last 24 hours. The 4-hour price chart gives a bullish outlook for the ADA token as it has formed a cup handle pattern. A break above the EMA-100 trendline and a consolidation near $0.44 will send the token to $0.58 in the near term.
However, a bearish reversal remains a concern as a drop below the $0.3 support level will trigger a severe drop in the ADA price chart, forcing the token to trade near the $0.24 region at 0. $.27.