Cardano Price Leads Bull Market Rally; Is $1 Next?

Cardano price is back on the move as the token rallies 10% in a fortnight to trade at $0.39 bolstered by excitement around a potential partnership with OpenAI’s founder Sam Altman.

Published 13 hours ago

Cardano (ADA), the current ninth-largest cryptocurrency with $13.6 billion worth of market cap, increased by another 5% on Monday after the protocol’s founder Charles Hoskinson presented a potential partnership idea to Sam Altman, OpenAI’s founder. ADA price is now trading at $0.39 backed by a 9% increase in the 24-hour volume to $370 million, CoinMarketCap data shows.

Over the last fortnight, Cardano price has increased by 10% with the smart contracts token surging 62% since the beginning of the year.

Is Cardano Price Heading To $1?

A couple of bullish crosses on the daily chart affirm the bullish thesis in ADA price. The first golden cross pattern formed when the 50-day Exponential Moving Average (EMA) (red) crossed above the 100-day EMA (blue).

A golden cross pattern serves as an assurance that it’s time for bulls to take the reins. Its impact on the token pulled ADA above the dotted descending trendline and the resistance at $0.3.

As investors booked positions ahead of the bull run, traders capitalized on short-term positions in ADA including scalping opportunities, which allow them to enter and exit the market on short time frames.

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The second golden cross pattern and the most impactful occurred with the 50-day EMA moving above the 200-day EMA (purple). This formation boosted Cardano through resistance at $0.33 and subsequently the seller congestion at $0.37.

Cardano price prediction chartCardano price prediction chart
Cardano price prediction chart | Tradingview

Although Cardano extended the up leg to $0.41, the token could not hold support at $0.4. Instead, a correction followed with ADA sweeping liquidity at $0.35.

It stands out that resistance between $0.4 and $0.41 is the biggest blockade hindering bulls from starting the next recovery phase above $0.5.

However, the Relative Strength Index (RSI) position above 70 (in the overbought region) could keep traders interested in ADA—who will provide the momentum required for gains past $0.5 while bringing the psychological $1 level within reach.

Despite the obvious bullish outlook in Cardano, it is too early to rule out consolidation possibly between support at $0.37 and resistance at $0.41. Movement above this region would imply a stronger breakout.

However, trading below the same zone could be seen as a sign of weakness. In such a case, ADA is not immune to more dips with $0.33 and $0.3 still levels worth watching.

Hoskinson Flaunts Potential Partnership With Open AI Founder Altman

Charles Hoskinson, the founder of Cardano, seized the moment and invited the founder of artificial intelligence firm OpenAI Sam Altman to consider collaborating on a decentralized LLM.

Altman, the man who helped grow OpenAI to become a leading AI company in the world boasting a multi-billion dollar deal with Microsoft, was fired as CEO by the board on Friday.

With Altman out of OpenAI, Hopkinson believes a partnership on “a decentralized LLM” could entice Altman. However, the collaboration is unlikely following the latest developments regarding Altman being hired by Microsoft on an AI project.

However, the thought of such a decentralized large language model project could elevate the Cardano ecosystem above other crypto networks and boost ADA price.

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.