Cardano price staged a strong comeback this week as cryptocurrencies bounced back. It rose to a high of $0.4298, which was the highest level since October 6 of this year. The coin has jumped by more than 23% from its lowesrt level this month.
Cardano and other cryptocurrencies have done well in the past few days. This recovery happened in sync with the performance of American stocks. Analysts believe that the cause was weak housing and consumer confidence data from the US.
These numbers pushed more people to start predicting that the Fed will start pivoting soon. As a result, the US dollar index and Treasuries retreated to their lowest levels in months. Historically, cryptocurrencies like BTC have an inverse relationship with the US dollar.
Cardano price has also risen because of the strong performance of its Non-Fungible Token (NFT) industry. Data compiled by OpencNFT shows that the volume of NFTs has been in a strong bullish trend in the past few months. As shown below, the daily volume of NFTs in the ecosystem surged to a record high this week.
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The most popular Cardano NFTs are SpaceBudz, Pavia, Clay Nation by Clay, Boss Cat Rocket Club, and The Ape Society among others. These numbers show that Cardano’s NFT activity in Cardano is doing well.
However, other parts of its ecosystem, especially DeFi is not doing well at all. Data compiled by DeFi Llama shows that Cardano ranks at position 35 in terms of its total value locked (TVL). It has a TVL of over $90 million. It has been beaten by other less popular chains like Celo, Canto, and Fusion.
The same is true in the NFT industry. While Cardano’s volume has risen, it is not a top 15 chain for NFT hosting. Instead, it has been defeated by other less-known projects like OEC, Panini, and Palm.
The four-hour chart shows that the ADA price has made a strong recovery in the past few days. As it rose, it moved above the important resistance level at $0.3657, which was the highest point on October 18.
Most importantly, Cardano has formed a bullish flag, which is usually a positive sign. The Relative Strength Index (RSI) is trading at the overbought level. Therefore, the coin will likely have a bullish breakout in the near term. If this happens, it could rise to $0.50.
