ADA Price Analysis: Cardano’s Growing Ecosystem Trigger Bullish Momentum! Analyst Marks Breakout Levels

The post ADA Price Analysis: Cardano’s Growing Ecosystem Trigger Bullish Momentum! Analyst Marks Breakout Levels appeared first on Coinpedia Fintech News

Cardano has become the favorite network for investors as it is making headlines in the crypto market with its robust announcements. Moreover, its unique approach to fulfilling its development goals has garnered a lot of attention in recent months.

With the launch of the much-anticipated stablecoin DJED, Cardano is looking to challenge the dominance of Ethereum as the go-to platform for decentralized applications (dApps). Furthermore, as the Cardano ecosystem continues to grow, investors are getting increasingly excited about the future price trend of the ADA token. 

Cardano Sends Bullish Waves To The Altcoin Market

With the launch of the Valentine upgrade and stablecoin DJED on the Cardano network, ADA price has gained massive support in making a potential breakout level. In addition, Cardano’s over-collateralized stablecoin, Djed, received an overwhelming response just one week after its launch. The stablecoin, which is based on the Cardano blockchain, has already gained over 30 million ADA tokens as backing, indicating strong investor confidence in the project.

The launch of Djed was a highly anticipated event, and it is the result of months of development by IOG, the Cardano code maintainer, and COTI, a fintech platform that specializes in creating price-stable coins. The stablecoin aims to provide a secure and reliable alternative to traditional cryptocurrencies known for their volatile nature.

The development team behind Djed stablecoin is planning to introduce several new features to the platform. One of the most promising developments is the upcoming release of “Djed Pay,” a payment system similar to Ada Pay but based on a stablecoin.

The introduction of Djed Pay is expected to increase the adoption rate of the stablecoin as it will allow users to transact easily. Cardano developers are also looking to establish a functionality that will allow traders to add more native assets to their portfolio, including wrapped Ether and wrapped BTC, which can be deposited into the Djed smart contract. This function will help to build up the collateral for the stablecoin, making it more stable and reliable.

What Lies Ahead For ADA Price?

ADA price has formed support near $0.39 after facing rejection at the EMA-200 trend line at $0.42. However, the buying volume is rising as buyers gain confidence from the recent developments in the Cardano network. 

According to CoinMarketCap, ADA’s price trades at $0.4, with a downtrend of 1.27% from yesterday’s price. A well-known crypto trader, BitDoctor, predicts a smooth bull run for ADA token in the upcoming days if it breaks above the 23.6% Fib level. As the ADA price trend has formed a ‘head and shoulder’ pattern, it may soon pave its way to $0.75 if it breaks above the resistance of EMA-200 and holds its price near $0.43. 

Conversely, a bearish reversal may emerge if ADA price trades below the weekly RSI level at $0.375, from which the token may pave its way to the bottom level of $0.31.