Coming from under $ 1 with a 2000% profit year over year, Cardano (ADA) continues to outperform Bitcoin, Ethereum and other cryptocurrencies in the top 5 by market cap. At the time of going to press, ADA is trading at $ 2.30 with a 9.8% profit on the daily chart.
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Following general market sentiment, Cardano looks poised for a further rise with significant resistance at $ 2.5. As shown in the chart below by Material Indicators, ADA (price in blue) has seen a massive rally from the lows of its current range.
However, the price apparently sits at weekly support in a short time frame and is likely to experience further decline if the crypto market continues to fall. On the upside, ADA moves swung $ 2.5 from resistance to support to reach a new price target near the $ 3 area.
Additional data provided by Material Indicators suggests the Cardano rally was primarily fueled by large investors (pictured in purple in the chart below), with most trading orders signaling increased buying pressure.
On the other hand, retail investors are selling the rise of ADA to its current levels. Most of these investors could profit at these levels, but their selling pressure has apparently been eased by buying orders between $ 100,000 and $ 1,000,000.
The bullish case of Cardano (ADA)
The Cardano ecosystem remains at the top of the fastest growing in the crypto space, as indicated by the high number of contributions recorded on GitHub. Additionally, its developer IOHK recently announced progress on major improvements for the network.
On GitHub, IOHK has created a compilation listing the “essential” projects in the ecosystem. The list spans multiple industries with hundreds of projects collaborating to benefit Cardano.
After deploying its smart contract capabilities with the Alonzo Hard Fork Combinator (HFC) event, the ecosystem has entered a new era with many investors betting on its growth.
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In addition, IOHK recently released a beta version of the network’s Plutus application server to enable its integration with the Cardano wallet. Designed as a platform that will allow users to easily deploy financial contracts, the company invited developers to give it a try. IOHK said:
This marks an important step in the DeFi journey on Cardano, simplifying the integration of #smartcontracts on the chain and easing the road to dApp deployment.