Cardano (ADA) has garnered much interest since the Chang hard fork upgrade. Despite the bearish sentiment that has engulfed the broader cryptocurrency market since September, ADA appears ready to extend its gains.
ADA was trading at $0.32 at the time of writing after a slight 2.46% gain in 24 hours. While the spot trading volumes have declined slightly, the derivatives market indicates a surge in interest.
According to Coinglass, ADA’s open interest stands at $173M after increasing by around 3%. This indicates that a large number of people are opening and maintaining positions on ADA.
Moreover, the recent gains in ADA price have led to the token forming a bullish pattern. According to trader Daan Crypto on X, ADA price has made a “clean breakout” on the one-hour chart. If the bullish trend continues, the analyst expects ADA to portray more signs of strength.
“ADA pretty clean breakout & retest here. If these things start working out, that’d be a good gauge of market strength… Generally, if things start moving up where they “should,” that’s a sign of strength and vice versa if it doesn’t obviously,” the analyst said.
Cardano’s four-hour chart confirms that a bullish trend is brewing. The Relative Strength Index (RSI) is at 45, showing that selling momentum is still at play.
However, the RSI line has been forming higher lows and has also moved above the signal line, confirming bullish momentum is in play.
The Moving Average Convergence Divergence (MACD) indicator also suggests that bulls could take control. Not only is the MACD line above the signal line, but the histogram bars have also turned green, further proving a case for the bulls.
Continuing the bullish momentum, we could see the ADA price heading towards the next resistance level at $0.34.
Cardano Joins Decentralized Recovery Alliance
This recent development comes as Cardano development firm Input Output (IOHK) joined the Decentralized Recovery Alliance. Other alliance members include Hedera, the Algorand Foundation, Ripple, and XRPL Labs.
This alliance is focused on promoting blockchain and Web3 security. Cardano will participate in the alliance’s Technical Oversight Committee to formulate the policies and standards needed to enable the recovery of crypto assets.
Cardano will also help solve one of the crypto industry’s main issues: security. It will support policy shaping while simplifying users’ crypto recovery process.
