Cardano (ADA) price continued its uptrend this week as Bitcoin and other cryptocurrencies rallied and as its DeFi ecosystem thrived. ADA jumped to a high of $0.4100 on Thursday, the highest point since April this year. It has soared by over 66% from the lowest level this year, giving it a market cap of over $13 billion.
DeFi ecosystem boomsCardano, like other cryptocurrencies, has done well in the past few months. This rebound happened as Bitcoin price surged to an eighteen-month high of over $37,500. Bitcoin has more than doubled from its lowest point this year. Other coins like Avalanche, Solana, and Tron have also surged.
Meanwhile, data shows that Cardano’s DeFi ecosystem is doing quite well. According to DeFi Llama, the network’s Total Value Locked (TVL) has risen to over $260 million. In ADA terms, the TVL stands at over 688 million coins, a few points below the all-time high of 684 million.
A closer look at Cardano’s DeFi dApps shows that most of them have seen their TVL surge by double-digits in the past 30 days. Indigo’s TVL has spiked by over 66% to over $64 million while Minswap, Liqwid, Optim Finance, and Astarter have roared back by over 60%.
This trend could continue if the cryptocurrency industry continues doing well. In most cases, DeFi networks tend to thrive when cryptocurrencies are in an uptrend. Most of them saw their biggest TVL in 2021 when all cryptocurrencies were thriving.
Further, data in the futures market shows that open interest has been rising after bottoming at $89 million in September. It soared to a high of $162 million on Thursday, the highest point since June of this year.
Open interest in the futures market is an important figure because it shows the volume of outstanding derivative contracts for a financial asset. A higher figure is usually a sign that the asset is seeing more demand.
Cardano price forecast
Turning to the daily chart, we see that ADA price has been in a slow bullish trend in the past few weeks. Along the way, the volume has also been rising modestly. Most importantly, the 200-day and 50-day moving averages are about to form a bullish crossover pattern.
In price action analysis, this pattern is one of the most popular bullish signs. For example, Bitcoin has surged hard recently after it formed its golden cross a few months ago. The Relative Strength Index (RSI) has also been rising.
Meanwhile, Cardano has flipped the crucial resistance point at $0.3800, the highest point on July 14th. Therefore, the outlook for Cardano is bullish, with the initial level to watch will be at $0.4620, the highest swing in April. This price is about 19.65% above the current level. A break above that level will push it sharply higher.
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