Cardano Surges 4.2% to $0.86 as Stablecoin Market Hits $40.37M Record
Cardano (ADA) has done it again! On September 8, it surged to a remarkable $0.86, achieving a 4.2% gain since September 1. This impressive leap can be attributed to heightened derivatives activity and stablecoin adoption. Let’s break down what’s driving this rally and where ADA might head next.
Key Points
- ADA is gaining traction as derivatives activity heats up.
- The stablecoin market capitalization has reached a historic $40.37 million.
- Traders are seeing a bullish sentiment with many positioning themselves for a potential profit.
Why Is Cardano on the Rise?
The recent upward movement in Cardano’s price is more than a fluke; it’s backed by solid data. The derivatives market indicates an optimistic atmosphere, with a funding rate of 0.0079% suggesting that long traders are confident in ADA’s potential.
Derivatives and Stablecoins Support the Rally
According to Coinglass data, the ongoing bullish sentiment is augmented by the surge in ADA’s stablecoin market cap. This growth is enhancing liquidity within the market, inviting more traders to jump aboard.
Technical Analysis: Cardano (ADA/USD) Breaks Out
From a technical standpoint, ADA is demonstrating a clear upward trajectory after weeks of stagnation. Currently, it’s hovering near $0.86 and trading above both the 50-EMA and 200-EMA.
With the RSI sitting at 68, momentum is strong. Key resistance levels are positioned at $0.879 and $0.90, while immediate support is found around $0.849 and $0.822.
Trade Setup for New Investors
- Consider a long entry if the price breaks sustainedly above $0.879, aiming for $0.90–0.923.
- Ensure a stop-loss is placed below $0.849.
- For short-term traders: if the trendline support fails to hold, be prepared for a pullback to $0.822.
Summary
The current momentum behind Cardano highlights bullish attitudes among traders, making this a critical moment to watch. With strong technical signals and growing market participation, ADA’s potential is vast. Keep your eyes peeled for future movements and adjust your strategies accordingly!
Stay updated and trade wisely!
