Why is Cardano up today? Looking into ADA’s 6% rally

• Cardano traded above a critical support level of $0.3172 at press time.
• ADA’s holders in profit turned bullish as well.

Cardano [ADA] is starting to show signs of life after a long period of decline. The altcoin has surged 6.31% in the last 24 hours and an impressive 11.39% over the past week.

This surge has increased the market cap of ADA to $13.4 billion, marking a 6.26% increase.

Cardano’s trading volume has also spiked by 29.6% to $351.6 million, according to CoinMarketCap. This indicated renewed interest from investors.

Support level holds strong

From recent price movements, ADA was trading above a critical support level at around $0.3172 at press time. This level has proven resilient, acting as a launchpad for the current rally. 

If ADA maintains this support, it could experience sustained upward movements.

Source: TradingView

The charts displayed a sequence of higher lows, which generally mean an uptrend continuation.

The stochastic RSI also showed an overbought zone, which suggested that ADA may witness short-term pullbacks before a bullish continuation.

ADA paints a bullish picture

Looking deeply into on-chain data brought up some positive signs. Large transactions went up by 14% – thus, institutional investors or whales were showing more interest.

This often happens when there are high-value transfers that precede price rallies.

Source: IntoTheBlock

Moreover, the number of profitable holders rose 7% to reach 21.51%. Though still low, this improvement meant that investor sentiment was gradually improving.

Source: IntoTheBlock

Adding to the aforementioned, there has been an upward movement in Cardano’s Total Value Locked (TVL) recently. This trend indicated increasing trust in Cardano’s DeFi system, adding more fuel to bullish ADA sentiments.

Source: DefiLlama

ADA’s recent performances showed that the market mood may be shifting. The combination of growing large transactions, holders’ rising profitability and a technical breakout are some of the positive things that point to future growth. 

However, there is still much uncertainty in the wider crypto industry, and ADA is far from reaching its all-time highs.

Read Cardano’s [ADA] Price Prediction 2024-25

Anticipation of the Chang hard fork?

Chang’s hard fork may have played a key role in ADA’s recent performance.

This upcoming network upgrade, which is anticipated for the 27th of August, as tweeted by Altcoin Daily, will introduce features like Plutus V3 and on-chain governance, aiming to improve the platform’s scalability.