Cardano price continued its recovery this week, rising for three consecutive days and crossing the important resistance level at $1. The ADA token rose to an intraday high of $1.0135 on Friday, making it one of the best-performing coins in the market.
Cardano price rises ahead of a big year
Cardano, the blockchain network established by Charles Hoskinson, is gearing for what will likely be its biggest year.
The network is preparing to incorporate BitcoinOS into its operations, a move that will give it access to a near $2 trillion market. This integration will happen through its partnership with Emurgo, a firm that supports Web3 adoption through the Cardano network.
The first part of the deal will see the integration of the BitcoinOS Grail bridge with Cardano’s network. As a result, it will enable trustless bridging of BTC and Bitcoin assets to the Cardano ecosystem. It will make Cardano the first layer 1 network to embrace the technology.
The potential implication of this is that it may help boost the Cardano total value locked (TVL), which has remained small over the years. Cardano has a TVL of less than $500 million, making it smaller than many newer chains like Base and Arbitrum. In a note, Edan Yago, BitcoinOS founder said:
“We are thrilled to reach this milestone with near-trustless BTC in one of the most distributed blockchains in the industry. BOS has consistently accelerated Bitcoin scaling through a full-fledged solution for dApps and L2s using the guarantees of zero-knowledge cryptography.”
This is likely because many large projects, such as Uniswap, Aave, and PancakeSwap, have ignored Cardano’s network.
Midnight zk mainnet launch
Cardano is also gearing towards the mainnet launch of Midnight, a scaling platform launched by Charles Hoskinson. Midnight will be the first zero-knowledge scaling blockchain for the Cardano ecosystem. Therefore, there is a likelihood that Cardano price will do well ahead of the mainnet launch.
Further, Hoskinson has pledged to ensure many large-scale collaborations this year. One of the potential collaborations will be with SpaceX, the space company established by Elon Musk. Odds of such collaboration started in November when he posted a picture standing next to a SpaceX rocket. Days before that, he hinted that he was about to make the biggest collaboration.
Most importantly, as one of the biggest projects in the crypto industry, it will likely benefit from the upcoming Trump administration. Hoskinson has previously hinted that he will be part of the crypto council.
Also, the Securities and Exchange Commission (SEC) will likely approve a spot Cardano ETF later this year. Such a move would lead to more inflows for Cardano as we have seen with Bitcoin and Ethereum.
Next year, Cardano is going to heights it’s never been before. We got Bitcoin DeFi, Midnight, Patnerchains, all the DApp upgrades, Midgard, and some extra magic that we’ll call “the fire rises”
ADA price analysis
ADA chart by TradingView
The daily chart shows that ADA price has bounced back in the past few days. This recovery started when the coin bottomed at $0.7623 on December 20th and formed a hammer pattern. A hammer comprises a long lower shadow and a small body.
Cardano has moved above the 50-day moving average and is approaching the 23.6% Fibonacci Retracement level. It has also formed a three-white crows pattern, which happens when there are three consecutive bullish candlesticks.
Additionally, Cardano has completed the formation of a break-and-retest pattern by moving back to $0.8070, the upper side of the cup-and-handle pattern. A B&R pattern is a popular continuation sign.
Therefore, the ADA price will likely continue rising as bulls target the next important resistance at 1.3268, the highest point in 2024, which is about 30% above the current level.
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