Surging Cardano: Approaching 1 Dollars Milestone Following a Dramatic Breakout – Is a Top 5 Ranking on the Horizon?

Crypto News- Cardano (ADA) boldly shattered its narrow trading confines on December 8, triumphantly overcoming the psychological resistance at $0.45 as bullish forces took charge. The bears were left powerless, allowing the token to soar to an impressive $0.58.

Surging Cardano: Approaching 1 Dollars Milestone Following a Dramatic Breakout – Is a Top 5 Ranking on the Horizon?

In the past 24 hours, ADA emerged as the standout performer among the top 10 cryptocurrencies, notching an impressive 23.98% gain, according to CoinMarketCap. Surprisingly, only Avalanche (AVAX) managed to achieve a double-digit surge within the same period.

Yet, signs of ADA being overbought loom large, evident in the Relative Strength Index (RSI) reaching 85.45 at present. While a reversal may be on the cards, any retracement is likely to find support around $0.55, a level that acted as resistance during the uptrend.

The Awesome Oscillator (AO), however, paints a different picture, indicating sustained upward momentum for ADA. A potential pullback, coupled with renewed buying pressure, could propel ADA beyond the $0.65 mark. Crypto analyst Ali Martinez, who foresaw ADA’s breakout, previously hinted at the possibility of the coin hitting $0.75 by late December if the upward momentum persists.

However, achieving the $0.75 milestone or higher hinges on robust buying activity. Traders are advised to keep a watchful eye on Bitcoin’s (BTC) movements, with a potential jump to $47,000 before December’s close potentially influencing ADA’s ascent, given their 0.96 correlation coefficient.

Cardano’s prowess extends beyond its price surge. According to DefiLlama, Cardano now stands as the 9th most valuable project in terms of Total Value Locked (TVL), currently boasting a TVL of $379.64 million. This figure reflects a remarkable 44.54% surge over the past week, marking the highest TVL since March 2022. The surge in TVL signifies growing trust among 72,821 addresses, anticipating substantial yields from locked assets. Should this trend persist, Cardano could soon surpass another chain to secure the 8th position, though fierce competition from Avalanche adds an element of uncertainty.