Cardano price slowly forms a bullish pattern as DEX volume jumps
Cardano price remained in a technical bear market after falling by over 72% from its highest level in November last year.
- Cardano price has dropped to its lowest level in over a year.
- The token has some bullish fundamental catalysts.
- It has formed a falling wedge pattern, pointing to an eventual rebound.
Cardano (ADA) token was trading at $0.3720, its lowest level in over a year. However, its technicals and improved fundamentals indicate a near-term rebound.
One potential catalyst is that Cardano’s decentralized exchange network is growing after the Midnight (NIGHT) launch. Data compiled by DeFi Llama shows that the DEX volume rose to $120 million this month, up from $100.2 million in November. Its protocols processed $87 million in October.
Most of this growth in volume is occurring on Minswap, which processed over $94 million in the last 30 days. The other top DEX networks by volume were SundaeSwap, WingRiders, and Splash Protocol.
Cardano has numerous catalysts that may drive it higher in the coming months. The Midnight mainnet launch will happen in the first quarter of next year. This will be an important launch as the NIGHT token has already achieved a market cap of over $1 billion and a daily volume of more than $1.5 billion.
Cardano will also launch Leios upgrade, which will boost its network speed by introducing parallel processing. It will now be able to handle thousands of transactions per second.
Meanwhile, Cardano Foundation and its partners are working on the Pentad initiative. Pentad is a major plan that aims to spend 70 million ADA tokens to solve the challenges that have hindered the network.
It will introduce Tier‑1 stablecoins such as USD Coin and Tether, along with oracle networks, institutional‑grade wallets, and analytics tools.
Cardano price will also react to the potential approval of ADA ETFs, which will likely lead to more demand from institutional investors.
Cardano price technical analysis
The daily chart shows that the ADA price has been in a strong downward trend in the past few months. It has remained below the 50-day moving average’s dynamic resistance.
On the positive side, the token has formed a falling wedge pattern, which is a typical bullish reversal pattern. This pattern is characterized by two descending and converging trendlines.
Therefore, as the two lines approach convergence, a bounce back to the $0.50 resistance level is possible, representing a ~40% increase from the current level.
