In the last few days, investor interest in Cardano (ADA) price has surged as its competitor’s zkEVM went live on Tuesday after completing its beta stage. This renewed attention to the Cardano network has created a significant boost for ADA price, resulting in broad attention and increased investor inflow. As Cardano’s price continues to break its resistance levels, it is anticipated that a potential bull run is brewing on the horizon this week.
Cardano Shows Signs of Independence
Cardano (ADA) is demonstrating signs of independence from the wider crypto market, highlighting its strength as an individual asset. This separation from major cryptocurrencies such as Bitcoin and Ethereum is a testament to ADA’s unique price trajectory and persistent uptrend, which has continued for over a month.
Notably, Cardano has experienced over 10% price surge in just the past two days, further solidifying its position as a standout asset in the crypto industry. This decoupling is a significant milestone, reflecting the maturation of the Cardano ecosystem and growing investor confidence in its long-term potential and utility.
Data from Santiment indicates that Cardano’s decoupling is not a temporary phenomenon. Large ADA holders with 10,000 or more coins have amassed a total of 1.03 billion coins in the past five months, signifying a 3.3% rise in their holdings.
Moreover, Cardano’s steady upward trend in the past month reflects a robust bullish sentiment among investors, validating the project’s long-term vision and endorsing its capacity to fulfill its commitments.
ADA Price to Breakout Above $0.4 This Week
The ADA price encountered significant profit-taking near the $0.36 mark, as both the 200-day and 55-day Simple Moving Average (SMA) were in close proximity in that region. However, the bulls managed to overcome this hurdle, making further gains more attainable, with the $0.4 resistance level now within reach.
However, investors may face a downside risk if they become concerned that the launch of zkEVM could falter, similar to the failed airdrop of Arbitrum. This is exemplified by the recent sell-off of Arbitrum, which occurred after rumors of hackers absconding with tokens worth $500,000.
As of writing, the Cardano token’s price trades at $0.385, with a gain of nearly 8% in the last 24 hours. The 4-hour price chart gives a bullish outlook for the ADA token as it has formed a cup-handle pattern. A breakout above the EMA-100 trend line and consolidation near $0.44 will send the token to $0.58 in the short term.
However, a bearish reversal remains a concern as a drop below the $0.3 support level will ignite a severe plunge in the ADA price chart, forcing the token to trade near the $0.24-$0.27 region.