Cardano price joined other cryptocurrencies in rallying overnight. The currency is trading at $0.3323, which is the highest point since April 2018. It has also rallied by more than 800% in the past 12 months, bringing its market cap to more than $10.38 billion. This makes ADA the sixth biggest digital currency after Bitcoin, Ethereum, Tether, Ripple, and Litecoin.
What happened: For starters, Cardano is a blockchain network that used proof-of-stake technology to help developers build decentralized applications, also known as DApps. The network is being built through five key phases, known as Byron, Shelley, Goguen, Basho, and Voltaire.
Initially, Cardano only allowed people to buy Ada cryptocurrency based on the Ouroboros protocol. Today, many applications are built using its network.
The current Cardano price rally is mostly due to the realisation of the power of the blockchain industry and the role of decentralized applications. For example, the total value locked in the DeFi industry has soared to more than $17 billion.
ADA price has also rallied because of the overall demand of digital currencies like Bitcoin and Ethereum and the weak US dollar. In fact, overnight, the value of all cryptocurrencies rose to more than $1 trillion.
Cardano price technical outlook
What next for ADA price: On the daily chart, we see that Cardano price is trading at $0.3375, which is slightly below the overnight high of $0.3622. On the daily chart, this price is above all moving averages while the momentum indicator has continued to rise. The same is true with the RSI and the accumulation and distribution indicator.
Therefore, in the near term, ADA will continue rising as bulls target the next resistance level at $0.4. However, in the longer term, there is a possibility that the currency will have a pullback.
ADA price technical chart