Cardano has been the best-performing cryptocurrency of the week, rising 12.2%. Such a spike was activated due to the bullish crossover Cardano has seen on its weekly chart, which has ignited bullish feelings among many investors.
Cardano (ADA) recently witnessed a strong bullish crossover, signaling a potential upward price movement. This is accompanied by a 12.2% weekly gain, positioning Cardano atop the list for the week on the list of top cryptocurrencies. The upward trajectory from the point where the 21-week EMA crossed the 55-week EMA at $1.09 is excellent. Such events are known to result in major price increases based on historical trends. For instance, that of February 2021 saw an upsurge of 400%.
Bullish Crossover Brings Big Rally Potential
The recent Price Rally in ADA is mainly due to a bullish crossover in the weekly chart. Here, 21 week EMA is about to have a bullish crossover over 55 weeks EMA which is going to be a tremendous setup for upside momentum. It took place at $1.09, which could be crucially important if historic trends go.
History of Bullish Crossover
This is the first bullish crossover in almost two years, the last experience was in February 2021, when prices shot up to 400%. The same point in time saw the 21-week EMA at $0.721 while the 55-week EMA was at $0.568, making the event for Cardano extremely technical, considering massive support lies near $0.83 and its first line of resistance at $1.20.
If Cardano is to keep up with the 2021 script, then ADA should be looking at a potentially huge rally over the medium term, depending on the market conditions.
Cardano Leads Weekly Crypto Gains with 12.2% Return
Cardano is the top crypto performer for this week with a 12.2% return
Cardano dominated the top 10 list in terms of performance this week. It also led the highest return on the weekly list with a jump of 12.2%. XRP follows behind ADA at 11.9%, and Solana takes the third spot with 10.5%.
Comparison to Other Cryptocurrencies
The best performer was ADA, with other popular cryptocurrencies like Ethereum and Bitcoin faring much less impressively. Ethereum was up 3.6%, and Bitcoin managed only a pathetic 1.3% despite holding a significant market share. This proves that Cardano is attracting investor interest, probably because of bullish technical signals and robust network activity.
ADA is sitting at a year-to-date return of 14.2%, which is below the market capitalization of $39.1 billion. If that trend continues, it will give Cardano a great chance to outplay Bitcoin and Ethereum, and thus take the lead in the coming months.
Institutional Interest as well as Open Interest Surge
The growth in open interest on ADA/USD has driven the move upward in price in Cardano in that trend. This broke open interest past $1.09 for ADA’s price, growing to reach $253.88 million on one chart, and showed how interested institutional traders were in its move. Retail traders started reducing their long positions, taking retail longs to 67.52%. This change is a control move from the side of the market retail traders dominated.
Market Sentiment Divergence
This divergence in sentiment, where retail traders are shorting the ADA while institutional investors are increasing their interest in ADA, hints at an increase in institutional participation in the ADA market. If retail traders continue to short ADA while institutional investors build up their positions, then a short squeeze would fuel further price appreciation, especially if Cardano breaks key resistance levels.
ADA’s Rising Network Activity Debunks ‘Ghost-Chain’ Claims
Cardano had earlier been referred to as a “ghost-chain” due to its lack of activity. However current data has revealed that this is not the case. The activity on Cardano’s network exploded as verified followers reached 6.3K out of 54.8K and total impressions hit 46.4 million. Engagement metrics are also healthy: over 1 million likes and more than 2.3 million engagements in total.
Network Activity and Engagement
There is also rising interest in Cardano, which has good engagement; at present, it has reached 144K reposts, 137K replies, and 108K visits on the profiles. Good shares and bookmarks are still on good terms with steady attention from the crypto community.
These engagement metrics indicate that Cardano is gaining influence and proving to be a good blockchain platform. More activity may be interpreted as greater adoption, thus adding more fuel to the price rally.
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Conclusion: The last price rally of Cardano seems to be able to push it up considering its bullish crossover as well as a growing network activity. With this, increasing interest from institutions along with an optimistic technical outlook and even market sentiment, ADA will still perform well in the succeeding weeks.
The path of Cardano will depend on external factors; thus, it will be followed by market conditions and overall economic influences, but the trend will be more bullish since investors are warned, according to the data, if Cardano breaks the critical resistance levels and sustains the bullish momentum, it may easily stay above. Cardano barely survives; its future looks bright since sustained growth is on the horizon.
Also Read: POPCAT Crypto Breaks Major Support: Will A 25% Price Surge To $1.20 Follow?
