What to know:

• Cardano’s ADA surged 12% in the past 24 hours, leading gains among major cryptocurrencies, influenced by Bitcoin's range-bound trading.
• Price-chart forecasts indicate potential for an additional 30% increase in the token's value.

Overview

Cardano’s ADA token experienced a 12% increase within the past day, marking a significant lead over other major cryptocurrencies. The price of ADA surpassed $1, reaching a three-week high. Meanwhile, Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) saw less than 2% increases.

The CoinDesk 20 (CD20) index, a liquid index monitoring the largest tokens by market capitalization, also rose by 1.57%.

Traders anticipate Bitcoin’s movement will remain within a range until late January, projecting gains starting from February as the President-elect takes office.

ADA's gain did not come with any immediate catalysts, but there are expectations for crucial developments in the forthcoming months, including a Bitcoin-centric decentralized finance ecosystem and enhancements to Cardano's scalability and network compatibility.

Further analysis indicates potential gains of up to 30% ahead for ADA.

Analyst Insights

"ADA's three-day rise has lifted prices above a trendline indicating a four-week pullback from early December highs," said CoinDesk analyst Omkar Godbole. "The breakout and a newly bullish crossover on the MACD indicate the possibility of revisiting the December 3 high of $1.32."

Godbole added, "The 14-day RSI seems poised to cut through a declining trendline, confirming the bullish price momentum."

Technical Analysis

The MACD (Moving Average Convergence Divergence) serves as a momentum indicator using average prices over time, while the RSI (Relative Strength Index) assesses the speed and change of price movements. A breach through a trendline signals continued upward potential.