Cardano (ADA) has kicked off the year on a positive note, with impressive price performance and record-breaking trading volumes. This has fueled optimism among crypto investors, who are anticipating a strong year ahead due to promised network developments and positive technical indicators.
ADA emerged as one of the most closely monitored coins in 2023, and it continues to captivate investors in the new year. Recent data reveals a bullish outlook for the digital asset in the coming months. Notably, ADA has witnessed a significant increase in daily trading volume, indicating a strong interest from investors.
According to data from Coinglass, the turnover metric has experienced an impressive surge of 49.07%, skyrocketing to a staggering $631.41 million. Interestingly, this upward trend in trading volumes has been observed since the summer of 2022 when volumes rose from $120 million to $400 million levels.
This surge in trading volumes has coincided with a rally in the ADA price, which reached a weekly high of $0.663448. However, the token has retraced by approximately 14% to trade at $0.541896 due to a broader market plunge experienced earlier today. Currently ranked 9th by market cap, ADA has a value of $19,531,377,388, down by nearly 80% from its all-time high price of $3.09.
Despite this, investors remain fairly confident that ADA will revisit its previous all-time high during the next bull market, given the network’s developments over the past two years.
Looking ahead to 2024, the Cardano team has announced an action-packed year for the network. The first major milestone on the agenda is the Chang hard fork, scheduled for 2024. This hard fork will mark a significant step towards achieving full Cardano community governance.
Additionally, the team plans to enhance interoperability with other blockchain ecosystems, with more developers working on Cardano and additional resources made available to them. The aim is to attract more third-party dApp development to Cardano, thereby expanding its utility and adoption.
However, one concern for ADA investors is its classification as a security by the U.S. Securities and Exchange Commission (SEC) in the previous year. Cardano development company IOG has strongly refuted this classification, asserting that ADA is not a security under U.S. securities laws. Co-founder Charles Hoskinson has criticized the SEC, accusing the agency of bias in determining which tokens are considered securities.
AI-powered machine-learning algorithms from CoinCodex suggest that now is a favorable time to buy ADA. The algorithm predicts that the token will end the year trading at $0.64. While the token may face resistance around $0.67, many experts anticipate that this barrier will be broken in the coming weeks, leading to ADA trading above $1.
In conclusion, Cardano’s strong start to the year, coupled with anticipated network developments and positive technical indicators, have generated optimism among crypto investors. Despite regulatory challenges, ADA continues to attract attention and is poised for potential growth in the coming months.