2024-12-27 14:36:43

Why is the price of Cardano (ADA) pumping today?

Since Cardano ADA fell to the psychological support level of $0.90 on December 10, it has shown a strong 26% rebound. The rapid recovery has placed it in a bullish position above the 50-day EMA level, potentially triggering its next rally.

ADA/BTC broke out after retesting EMA200

In the past few days, the strong daily returns of BTC have helped ADA's performance. As shown in the chart, ADA/BTC retested the 200-day EMA level on the 4-hour chart.

The indicator usually tests higher lows in an upward trend, and a strong rebound of EMA indicates the continuation of the bullish trend during the "altcoin season".

However, after the recent liquidation event, the altcoin season index briefly fell below 75. It still remains at a relatively high level of $69, which means that altcoins like ADA may continue to outperform BTC in the short term until the top crypto assets re-enter the price discovery phase, surpassing the historical high of $104,670.

ADA-0,64%

BTC-0,84%

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