Cardano price has staged a strong bullish recovery in the past few days as investors wait for the upcoming Vasil hard fork. The ADA/USD pair has jumped to a high of 0.5480, which was the highest point since June 12th. It has risen by more than 30% from its lowest level this year.
Why is ADA soaring?
There are three main reasons why the Cardano price has jumped sharply in the past few weeks. First, the rally is mostly because of the close correlation that exists among cryptocurrencies. Indeed, most coins have rebounded in the past few weeks. Bitcoin has risen to $23,000 while Ethereum has soared above $1,500.
At the same time, there is a close correlation between cryptocurrencies and American stocks. Most American indices like the Dow Jones, Nasdaq 100, and S&P 500 have all rallied in the past few weeks even as companies have published weak results. For example, Netflix reported that it lost more than 700k subscribers in Q2 after it lost over 2 million in the previous quarter.
Second, Cardano price has jumped because of the upcoming Vasil hard fork that will radically change how the network works. According to the developers, Vasil will usher in a new era of fast speeds and more scalability. It will add reference inputs, which will enable data sharing on-chain. Further, it will add inline datums and implement reference scripts.
Finally, ADA price has risen because of the relatively higher volume in its DeFi platforms. According to DeFi Llama, its TVL has jumped to about $136 million from June’s low of $107 million.
Cardano price production
The four-hour chart shows that the ADA price has been in a strong bullish trend in the past few days. The coin has managed to move above the important resistance point at $0.5241. It has risen above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, the coin will likely keep rising as bulls target the key resistance level at $0.600. A drop below the support at $0.51 will invalidate the bullish view.