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Cardano (ADA), a prominent smart contract-focused cryptocurrency, has demonstrated a remarkable recovery, marking a significant shift in its market trend. Since the end of the 2021 bull run, ADA has been experiencing a bearish trend. However, closing the fourth quarter of 2023, it has shown a bullish outlook, registering an impressive gain of over 170%.

The renewed interest in ADAs value can be mainly credited to growing liquidity and increased trading on both centralized and decentralized financial (DeFi) platforms. Notably, the open interest in ADA has risen sharply, moving from under $100 million in October to over $300 million recently.

Now, what next? Read on to discover more about your favourite cryptocurrency!

Cardanos goal to challenge Ethereums leading position in the DeFi sector is gaining momentum. By emphasizing the broader adoption of smart contracts, Cardano has secured a Total Value Locked (TVL) of approximately $424 million. Although this is a significant achievement, it still trails behind Ethereums impressive $29.9 billion.

The rising popularity of Cardanos DeFi protocols and meme coins, especially Snek (SNEK), has sparked discussions within the crypto community.

Also Read: Which Altcoin Will Hit $1 in January 2024: Cardano (ADA) or Ripple (XRP)?

Looking at ADAs short-term price trends, technical experts are optimistic. The daily chart shows an ascending triangle pattern, indicating potential bullish movement. Captain Faibik, a respected crypto analyst on the X platform, suggests that if ADA can close above this patterns upper boundary, it might aim for the 80-cent level.

Further supporting this positive view is ADAs weekly Relative Strength Index (RSI), which has surpassed the key level of 70 for the first time since 2021. Additionally, analyzing ADAs weekly chart using the Elliott wave theory suggests that the cryptocurrency is setting up for a third bullish phase, possibly similar to Bitcoins past performance. Considering these technical insights and the evolving market conditions, ADAs future looks promising for many in the crypto space.

Also Read: Top Cryptocurrency Picks for January 2024

Cardanos on fire, but can it dethrone Ethereum? Share your thoughts.

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Cardano Price Analysis: 40% Rally on the Cards, Ethereum to Be Left Behind? - Coinpedia Fintech News