Cardano (ADA) has kicked off the year on a strong note, with impressive price performance and record-breaking trading volumes. Crypto investors are optimistic about the year ahead, thanks to promised network developments and positive technical indicators.
ADA was one of the most closely watched coins in 2023, and it continues to impress investors in 2024. Recent data suggests a bullish outlook for the coming months, as the digital asset has seen a surge in daily trading volume, indicating strong investor interest.
Data from Coinglass reveals a significant increase in trading volume, with a rise of 49.07% to reach a staggering $631.41 million. This upward trend in volumes is notable, as trading volumes have not reached levels of $400 million since the summer of 2022, when they were at $120 million.
The spike in volumes has coincided with a price rally for ADA, with the digital asset reaching a weekly high of $0.663448. However, due to a wider market plunge earlier today, the token has retraced by approximately 14% and is currently trading at $0.541896. Despite this dip, ADA remains the 9th-ranked coin by market cap, with a value of $19,531,377,388. Nevertheless, it is down by nearly 80% from its all-time high price of $3.09.
Investors remain confident that ADA can revisit its all-time high price during the next bull market, thanks to the network developments over the past two years.
Looking ahead to 2024, Cardano has an action-packed year planned. The team behind the project has announced a major technical milestone called the Chang hard fork, scheduled for this year. This hard fork will play a crucial role in achieving full Cardano community governance.
The team also has plans for increased interoperability with other blockchain ecosystems. This will involve more developers working on Cardano and providing a range of resources for developers on the platform. Additionally, the team aims to attract more third-party dApp development to Cardano, expanding its utility and adoption.
One concern for ADA investors is its classification as a security by the U.S. Securities and Exchange Commission (SEC) in the previous year. However, Cardano’s development company IOG has responded by stating that ADA is not a security under U.S. securities laws. Co-founder Charles Hoskinson has also criticized the SEC, arguing that the agency has shown bias in determining which tokens are securities.
According to AI-powered machine-learning algorithms used by CoinCodex, now is a favorable time to buy ADA. The algorithm predicts that the token will end the year trading at $0.64. Although the token faces significant resistance around $0.67, many experts believe it will surpass this level in the coming weeks and trade above $1.
Overall, Cardano shows great potential for the year ahead, with investors eagerly anticipating network developments and positive market performance.