The Cardano price is trading at an important resistance as Bitcoin and other altcoin prices rebound. The coin is trading at $1.17, which is about 57% above the lowest level this year. Its market value has climbed to over $37 billion.
Cardano ecosystem growth
Cardano is a leading blockchain project that has been around for over 6 years. Developed by Charles Hoskinson, the network hopes to become a faster, low-cost, and highly flexible alternative to Ethereum.
In its existence, Cardano has been overtaken by other younger projects like Terra, Solana, and BNB. That happened as the network spent years without smart contract features.
This changed last year after the Alonzo hard fork. Since then, several developers in all blockchain industries like the metaverse, decentralized finance (DeFi), and non-fungible tokens (NFT) have started building.
In the past few months, these developers have not managed to build any mainstream product. The most successful product was SundaeSwap, which is a DeFi platform for swapping tokens. It now has over $106 million in total value locked.
The other main project built in Cardano is MinSwap, which has pushed its TVL to over $213 million. This makes it one of the fastest-growing projects in Cardano’s ecosystem and analysts expect that it will keep growing.
They also expect that some more projects developed in Cardano’s ecosystem will continue seeing wider acceptance. For example, Charles Hoskinson has estimated that thousands of developers are already building in the network.
The ADA price is also rising as the cryptocurrency winter season eases. In the past few days, most cryptocurrencies like Bitcoin and Ethereum have continued their bullish trend. BTC rose to over $47,000 while the total market value of all coins has risen to over $2.1 trillion.
Cardano price prediction
The four-hour chart shows that the ADA price has been in a strong bullish trend in the past few months. The coin rose above the key resistance level at $1.01, which was the highest level on March 1 this year. Along the way, it has moved above the 25-day and 50-day moving averages.
The Cardano price has also moved above the 78.6% Fibonacci retracement level. It also seems like it has formed a small double-top pattern at around $1.1872. In price action, this pattern is usually a bearish sign.
Therefore, there is a likelihood that the coin will retreat unless bulls manage to push it above the upper side of the double-top pattern.