Cardano to maintain bullish momentum, analyst says

Crypto analyst Ali Martinez is optimistic about Cardano (ADA) and anticipates “new yearly highs.”

The cryptocurrency accomplished a noteworthy feat in decentralized finance (defi), securing a spot in the top 10 platforms by total value locked (TVL) and reaching a recent peak of $343 million.

Cardano (ADA) defi ecosystem buzzing 

The notable surge in the price of ADA, from $0.4 to $0.5, has injected over $100 million into the ecosystem, bringing the cumulative TVL to $361 million. This growth has propelled Cardano to the ninth position based on TVL, surpassing networks like Bitcoin, Base, and Cronos.

Ali Martinez, a crypto analyst, wrote on X that Cardano is currently situated within a crucial demand zone ranging from 37 cents to 38 cents. 

In this zone, 166,470 wallets have accumulated 4.88 billion ADA. Given the lack of significant resistance and substantial support, maintaining a position above this range might open the door for Cardano to reach “new yearly highs.”

However, caution is advised, as a dip below this support level could potentially trigger a short-term correction to 34 cents, he further emphasized. 

Cardano’s expansion in the defi domain is fueled by diverse protocols, including its Indigo, a CDP protocol boasting a TVL of $84.92 million. 

Other noteworthy projects are Minswap, a decentralized exchange with a TVL of $79.8 million, Liqwid (lending protocol), Djed Stablecoin (decentralized stablecoin), and MuesliSwap (DEX). These protocols exemplify the diverse range of defi solutions available within the Cardano ecosystem.

The market has responded to Cardano’s recent achievements with optimism and enthusiasm. Both market participants and experts anticipate a swift climb towards the $1 mark. 

Amidst this positive shift in sentiment and market dynamics, Cardano and its investors can anticipate a more favorable outlook, potentially reaching the coveted $1 milestone.

Cardano was founded in 2017 by Charles Hoskinson, a co-founder of Ethereum.

Jeremy Wood, a technologist, was also a co-founder Currently, Cardano is overseen by three separate and independent organizations, which are the Cardano Foundation, IOHK, and Emurgo.

Bitcoin ETF approval anticipation fueling uptrend 

The potential approval of Bitcoin ETFs in early January 2024 has sparked optimism among investors, with analysts foreseeing a robust bull cycle.

If the SEC approves a spot Bitcoin ETF by January 2024, this endorsement has the potential to significantly impact the price dynamics not just of Bitcoin but also of other major cryptocurrencies.

Speculations surrounding approving a spot Bitcoin Exchange-Traded Fund (ETF) since October have sparked a more extensive market recovery. 

During this period, Bitcoin ($BTC)  and other altcoins achieved a new annual high. The recent resurgence in the crypto market is reportedly attributed to a notable shift in attitude at the U.S. Securities and Exchange Commission (SEC) towards ETF approval. 

While the earlier part of the year faced delays in regulator responses to ETF filings, indications suggest the SEC may have adopted a more accommodating stance.

As per reports, talks have progressed to focus on crucial technical aspects, and applicants are optimistic that this could pave the way for the historic approval of the first Spot Bitcoin ETF in the United States.

At present, the SEC is reviewing 13 applications for Bitcoin ETFs submitted by major asset management firms such as BlackRock, Fidelity, Grayscale Investments, and ARK Investments. Noteworthy is the fact that several of these companies have made significant updates to their applications in the past week, indicating the dynamic nature of their proposals.

The anticipated approval of a spot Bitcoin ETF is poised to draw in conservative investors, potentially resulting in a significant inflow of funds into the crypto space. The expectation is that it bolsters the market, potentially triggering a more robust bull cycle.