Cardano price rose sharply on Tuesday, going up by 11% at the time of writing to trade at $0.795. The coin’s break below the $1 mark epitomised its recent decline since mid-January. That momentum has seen ADA price decline by 19% in the last month. Furthermore, despite today’s gain, the coin’s 20-day SMA is still below the 50-SMA, underlining the strong bearish hold.
More to It than ETF Momentum?
The upward momentum on Cardano price is attributed to an ETF filing by Grayscale. NYSE Arca filed placed an ETF application on behalf of Grayscale, pointing to rising institutional interest in the coin. Following the filing, ADA was among the top five most discussed crypto assets in the last 24 hours, as per analytics site, Santiment.
In addition, the rise in Cardano price was accompanied by a substantial spike in its traded volume. The coins traded volume in the 24 hours preceding this writing was up by 93.4%. Rising volume in times of a price ascent signifies strong bullish momentum. A continuation of that trend could help Cardano price breach the psychological resistance at $0.800.
Elsewhere, Coinanalyze reports that Cardano’s open interest rose by 9.1% to $364 million in the last 24 hours. That signals rising investor confidence in the coin’s performance in the coming days, and the sentiment will provide support to ADA price.
Cardano Price Prediction
Cardano price pivots at $0.752 and action above that level signifies control by the buyers. The coin will likely meet the first resistance at $0.800. Above that level, the momentum could strengthen and potentially take the price higher to test $0.830.
Alternatively, moving below the pivot mark will shift the momentum to the downside. With the sellers in control, ADA will likely move to the first support at $0.725. Breaking below that level will invalidate the upside narrative. Also, an extended control by the sellers could test the second support at $0.684.
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