Cardano Price Prediction: Upbeat Crypto Sentiment Plus Vasil Update to Send ADA to $0.69?

Key Points

• Cardano is an outperformer amid a broad rally in crypto markets on upbeat macro sentiment.
• Analysts are citing optimism about the upcoming Vasil upgrade as supportive, whilst positive technical developments are also helping.
• ADA was last near $0.53, having earlier rejected a test of resistance at $0.55, though bulls still eye $0.69.

Market Update: Cryptocurrencies Rally

Major cryptocurrencies are on the front foot on Wednesday. Analysts cited a rally in global equity markets driven by upbeat US earnings and an easing of fears about the energy crisis in Europe, with Russia reportedly set to restart gas flows to Germany via the Nord Stream 1 pipeline on Thursday, as boosting crypto risk appetite.

Total cryptocurrency market capitalization was last around $1.035 trillion and eyeing a test of the May low around $1.082 trillion. The world’s largest cryptocurrency by market capitalization, Bitcoin, was last changing hands just below $23,500, having come close to testing the $24,000 level earlier in the day. According to CoinMarketCap, Bitcoin is up around 7% in the last 24 hours.

Cardano Price Prediction: ADA Tests Resistance at $0.55, Eyes Break Towards $0.69

Cardano is the third best-performing cryptocurrency in the top 20 by market capitalization over the past 24 hours, according to CoinMarketCap. Over this time period, ADA has gained more than 10%. Analysts put Cardano’s outperformance down to optimism about its upcoming Vasil hardfork upgrade scheduled for later this month that should significantly improve the blockchain’s speed and scalability.

ADA was last changing hands around $0.53 per token, having backed off from earlier session highs in the $0.55 area after failing to break above a key support-turned-resistance area from June. Despite pulling back from earlier session highs, ADA bulls will remain confident. The cryptocurrency is up an impressive more than 30% from last week’s lows just above $0.40.

Moreover, ADA/USD’s technical outlook took a significant turn for the better this week when it broke above a downtrend from mid-June and its 21-Day Moving Average (at $0.462) on Monday and then its 50DMA (at $0.497) on Tuesday. A break above resistance at $0.55 would open the door to a swift move back to late-May highs in the $0.69 area.

Beyond the $0.69 level, the next key area of resistance would be a test of February/early May lows in the $0.74 area. Above that, there is then the 200DMA at $0.83. Should a continued improvement in macro sentiment, perhaps if US earnings continue to surprise to the upside, continue to drive broad crypto gains and should Cardano’s developers successfully pull off the upcoming Vasil hard-fork upgrade, then a test of some of these upside resistance levels is most certainly on the cards.

Another factor that could help lift ADA in the days/weeks ahead is if the cryptocurrency’s 21DMA rises back above its 50DMA. Some technical/algorithmic traders might see such a development as bullish for the cryptocurrency, with it signaling a near-term shift in momentum. When the 21DMA fell under the 50DMA back in early May, this proved an excellent predictor of near-term downside.

TVL in Cardano’s DeFi Ecosystem Hits Highest Since Early June

The Trade Value Locked (TVL) within Decentralized Finance (DeFi) platforms running on the Cardano blockchain has surged in recent days. TVL was last up nearly 10% in the last 24 hours to around $170 million, a rise of about $37 million since this time last week. Analysts said the surge in TVL is likely tracking to recent bullish breakout in Cardano’s ADA token and amid optimism about the blockchain’s upcoming Vasil hard fork.

Cardano still plays a very small role in the broader DeFi ecosystem. TVL across the space was last around $77.5 billion, up sharply from last month’s lows in the $66 billion area, but still way down from record highs hit in early 2022 above $220 billion. In terms of TVL locked into its DeFi apps, Cardano still lags its major rivals by a significant margin.

Ethereum last had a TVL of around $45 billion, Binance of around $6.8 billion, Tron of just under $6 billion, Avalanche of just under $3.5 billion, Solana of around $2.3 billion and Polygon of just over $2.0 billion.

Cardano Joins Mongolia’s US Chamber of Commerce Affiliate

The company behind the creation of the Cardano blockchain Input Output Global (IOG, formally known as Input Output Hong Kong or IOHK) has joined the official affiliate of the US Chamber of Commerce in Mongolia. Mongolia’s American Chamber of Commerce (AmCham), an independent membership-driven organization that seeks to build, strengthen, and protect business between the US and Mongolia, described IOG as a “leading technology company committed to the highest principles of academic rigor and evidence-based software development”.

Cardano’s founder Charles Hoskinson will participate in a presumably virtual meet & greet with the organization later on Wednesday. IOG’s move to join AmCham comes after it joined the Linux Foundation as a gold member back in June, making it the only non-profit to have secured this level.