ADA price has started the year well as I wrote in my recent risk and reward analysis for the coin. Cardano soared to a high of $0.345, the highest point since November last year. At its peak this year, it was up by more than 45% from its lowest point in 2022. So, what is the forecast for Cardano in the near term?
Cardano has had a relatively positive start of the year. Its token has surged while fees in the ecosystem is crawling back. Data shows that Cardano’s network generated about $,8,000 in fees in the past 24 hours. That is extremely tiny from what other blockchains generated in the same period. For example, Ethereum made over $3.3 million while Uniswap and GMX made over $2 million each.
However, a closer look shows that Cardano’s fees have been trending upward in the past few days. They bottomed at about $4,500 in December and have now risen to the highest level since November last year.
A closer look at Cardano’s ecosystem shows why this trend has happened. For example, data shows that the total value locked (TVL) in its decentralized finance (DeFi) ecosystem has surged by over 26% in the past seven days. It currently stands at over $65 million.
Most Cardano DeFi platforms have had double-digit gains in assets in the past 7 days. WingRiders assets have jumped by 42% while Indigo have risen by more than 36%. Other Cardano dApps that are doing well are Minswap, MuesliSwap, and Lending Pond among others.
Cardano’s NFTs have also started the year well. According to CryptoSlam, NFT sales volume in Cardano dropped to about $7.9 million from the previous month’s $9.58 million. In January alone, it has handled NFTs worth over $3.2 million. This means that its volume could pass those of December.
Still, fundamentally, there is a question of whether Cardano, which is making less than $10,000 per day should have a token valued at over $10 billion.
The daily chart shows that ADA price has done well in the past few weeks. It rose to a high of $0.346, which coincided with the descending trendline shown in red. The coin also rose above the 50-day moving average. Oscillators have also pointed upwards.
Therefore, the outlook for Cardano is still bullish, with the next key level to watch being at $0.40, the lowest point on May 12. A drop below the support at $0.28 will invalidate the bullish view.
