Cardano (ADA) Price Crosses $0.45 First Time in 10-Days, $0.50 Target in Sight

After having dropped to historic lows on Friday July 5, a positive shift in the US macroeconomic environment has provided a favorable backdrop for ADA's

Cardano (ADA) price is up over 40% in the last 11 days of trading. This bullish momentum comes as ADA price briefly retested the $0.45 territory on Tuesday.

Cardano Price Surges 40% in 11 Days, Set to Cross $0.50

After hitting historic lows on Friday, July 5, a positive shift in the US macroeconomic environment provided a backdrop for ADA’s recent rebound phase.

Positive Non-Farm Payroll (NFP) and Consumer Price Index (CPI) data bolstered investor confidence in the economic outlook, boosting the broader cryptocurrency market.

Furthermore, the anticipation of upcoming Ethereum ETFs spurred into the altcoin market, including Cardano, as investors sought promising opportunities beyond Bitcoin and Ethereum.

The chart above shows how ADA price slid to a 2024 bottom of $0.32 on July 5. But following the recent dovish macroeconomic reports, bulls returned to the ADA markets with intensity.

On Tuesday, ADA price briefly retested the $0.45 territory, marking a 40% rebound over the last 11 days of trading. While Cardano price uptrend mirrored the broader crypto market, on-chain data shows some internal bullish catalysts.

Cardano TVL Hits $240 Million Amid Market Rally

One of the key drivers of this price increase is the growing Total Value Locked (TVL) within Cardano’s decentralized finance (DeFi) ecosystem. According to DeFiLlama, TVL has risen dramatically, starting the year with less than 200 million ADA and now exceeding 682 million ADA.

Projects like the collateralized debt protocol Indigo and the decentralized exchange Minswap have both crossed over $50 million in TVL, indicating robust adoption and engagement.

Valued at the current prices, the total value of assets deposited on the Cardano blockchain network has crossed $240 million for the first time in three weeks. Usually, an increase in TVL is considered a major bullish signal for the native token for a few reasons.

Firstly, Cardano’s TVL surge is a prime indicator that daily active addresses and transaction volumes have risen, indicating strong network engagement. Secondly, it also indicates cooling selling pressure as more tokens are being locked up. This declining market supply could further accelerate ADA price rally, if the bulls remain in the driving seat.

Cardano Price Forecast: $0.50 Target In Sight

Cardano (ADA) has seen a notable bullish trend, trading at $0.43 after a 40% increase over the last 11 days. This upward momentum is reflected in the strong performance of key technical indicators, suggesting that the cryptocurrency could soon test the $0.50 resistance level.

The daily chart shows a robust uptrend as ADA has managed to climb from a recent low of $0.31 to its current price, supported by a positive Accumulation/Distribution Line (ADL). This indicator suggests a steady inflow of capital into ADA, highlighting growing investor confidence. The Parabolic SAR (Stop and Reverse) dots are well below the current price, indicating a sustained upward trend and providing a near-term support level around $0.35.

The Relative Strength Index (RSI) is also in a favorable position, currently at 56.36, which is just below the overbought territory. This suggests that there is still room for further price appreciation before ADA becomes overextended.

The recent price action has seen ADA consolidate its gains around the $0.43 mark, creating a strong base for a potential breakout. If ADA manages to clear the immediate resistance at $0.45, the next target would be $0.50. Beyond this level, the Fibonacci extension tool points to a potential rally towards $0.55, which could be a significant milestone for Cardano.

Conversely, if the price retraces, strong support is likely to be found at $0.40 and $0.35, ensuring that any pullbacks are quickly contained.

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