ADA Coin today captured a return above the general market uptrend with an increase of around 10%, but why? As this article is being prepared, ADA Coin is trading close to $0.52, while SOL Coin is outperforming many other popular cryptocurrencies. BTC, after approaching the $45,500 limit, has weakened slightly and appears to be undergoing profit-taking.
ADA Coin’s price increase today is related to the growing optimism in the general market sentiment. While BTC and Ether gained close to 5%, ADA Coin’s gains were double that. The daily correlation coefficient between Cardano and Bitcoin has always remained positive in the past and is currently around 0.75.
The recovery in the general market sentiment is related to the upcoming halving in April, the slowdown of GBTC outflows, and the strengthening of net inflows into ETFs. Travis Kling, the chief investment officer at Ikigai, linked ADA Coin with the general market expectation and emphasized that the outlook is positive in the Fed’s discount cycle.
“A week ago, the market was pricing in six interest rate cuts from March. Last week, Powell said there would be no cut in March. Last night on 60 Minutes, he said there would be three cuts, not six. What’s the result? Stocks and crypto are rising.”
The Fed has to proceed cautiously, and the decision for three cuts could change, but the crypto recovery linked to the rise in stocks is related to the latest earnings reports. The positive results from Nvidia and many technology companies have been supportive for the US stock markets.
ADA Coin Price Predictions
The total value locked in the Cardano ecosystem has significantly increased in the last 24 hours. Moreover, Cardano’s price surge in the last 24 hours is also supported by the recovery in the number of daily active addresses and transaction volume. However, development activities are as slow as usual, which damages the expectation of parabolic growth in the medium to long term.
On the technical side, there was strong support with the $0.494 support and the merging of the lower trend line of ADA’s current bear flag formation. The price has bounced from here but has not yet recovered to the expected extent. If the $0.55 trend line can be reclaimed, the rise could be sustained; otherwise, we could see a drop to $0.421.
The broad descending channel formation suggests that $0.72 could be tested around March or April. The general market sentiment at the time of the halving will be decisive for this target.