Cardano (ADA) Price Soars 40% with $240M TVL and Ethereum ETFs as Positive Drivers

Cardano (ADA) has recently witnessed a substantial surge in price, reaching $0.44, marking a 40% increase over the past ten days. This uptrend has been fueled by a combination of internal and external factors that have reignited investor enthusiasm and optimism.

Following a period of reaching historic lows on July 5, a positive shift in the US macroeconomic landscape has created a conducive environment for ADA’s recent resurgence. Favorable Non-Farm Payroll (NFP) and Consumer Price Index (CPI) data have instilled confidence in investors regarding the economic outlook, thereby providing support to the overall cryptocurrency market.

Moreover, the anticipation surrounding the imminent launch of Ethereum Exchange-Traded Funds (ETFs) has had a spill-over effect on the altcoin market, including Cardano. Investors are increasingly seeking promising opportunities beyond the realms of Bitcoin and Ethereum.

The chart depicting ADA’s price trajectory illustrates a decline to $0.32 on July 5, followed by a bullish resurgence propelled by positive macroeconomic reports. On July 16, ADA briefly revisited the $0.45 mark, showcasing a remarkable 40% rebound over the preceding ten days of trading. While Cardano’s price surge has mirrored the broader crypto market trend, on-chain data indicates the presence of internal bullish drivers.

A significant catalyst behind this price surge has been the escalating Total Value Locked (TVL) within Cardano’s decentralized finance (DeFi) ecosystem. The TVL, as reported by DeFiLlama, has experienced a substantial increase, surpassing 682 million ADA from under 200 million ADA at the beginning of the year. Projects such as Indigo and Minswap have individually exceeded $50 million in TVL, underscoring robust adoption and engagement levels.

The current total value of assets deposited on the Cardano blockchain network has surpassed $240 million for the first time in three weeks. The surge in TVL is often viewed as a bullish signal for the native token due to increased daily active addresses and transaction volumes, indicating heightened network engagement and reduced selling pressure, potentially further propelling ADA’s price rally.

Cardano’s recent bullish trend, with a current trading price of $0.43 following an 11-day 40% surge, suggests a positive outlook. Key technical indicators point towards a potential test of the $0.50 resistance level in the near future. The Accumulation/Distribution Line (ADL) and Parabolic SAR dots indicate a sustained upward trend, with the Relative Strength Index (RSI) positioned favorably for further price appreciation.

In conclusion, Cardano’s price forecast indicates a target of $0.50 on the horizon, with potential further gains towards $0.55. Strong support levels at $0.40 and $0.35 are expected to mitigate any retracements. It is essential to note that this content serves as informational and not financial advice, urging readers to conduct thorough research before making investment decisions.