Cardano Price Prediction: ADA Recovers As Binance Announces Liquidity Mining
Daily Cardano ADA Technical Analysis
- The Cardano price has had a bullish recovery after four straight bearish days.
- ADA is presently sitting below strong resistance barriers.
Prior to this Monday, the price of Cardano dropped from $0.93 to $0.84. However, the buyers managed to regain control and correct the price to 0.88. Let’s take a closer look with technical analysis.
Bulls Step Up To Stop Cardano Price Downflow
When we study the daily Cardano price chart, ADA has bounced up from the $0.84 support wall and jumped to $0.88. However, this bullish correction has ensured that the asset still remains overvalued, per the relative strength index (RSI).
Image: ADA/USD daily
Looking at the IOMAP, we can see that the $0.84 level is particularly robust because 24,500 addresses had previously purchased 1.7B ADA tokens here. Plus, the Cardano price is also sitting under two strong resistance barriers at $0.88 and $0.92.
Looking at the 4-hour Cardano chart, there are two positive signs:
- The parabolic SAR has reversed from bearish to bullish.
- The MACD shows that the bearish momentum is decreasing.
However, it must be noted that ADA has already faced rejection at the 20-bar SMA.
Image: ADA/USD 4-hour
Binance Chain To Start Cardano Liquidity Mining
Venus Protocol recently announced that it would add support for Cardano’s ADA onto its platform. This will allow its customers to use their ADA holdings as collateral for borrowing and lending. Notably, Venus runs on the Binance Smart Chain (BSC).
ADA surged significantly this year, making it the fourth-largest cryptocurrency, with a market capitalization of over $26 billion. Some Other leading crypto assets that are currently listed on the Venus platform include ETH, BTC, BCH, BNB, XRP, LINK, DOT, FIL in addition to other stablecoins.
Venus has grown rapidly since its launch in November 2020. The company has claimed that in four months, it has acquired 18,000 users and about $2 billion of total value locked (TVL). According to CoinMarketCap, the protocol has the highest 24-hour volume of all DEXs.
Activities like token swaps are typically cheaper on BSC than on Ethereum, which is known for its expensive gas fees. The high prices have made it difficult for traders with less capital to access decentralized finance (DeFi) apps. Meanwhile, the Cardano team also has plans of rolling out their own lending and liquidity provision protocol dubbed Liqwid Finance.
Cardano Price Is Expected To Reach These Levels
If the Cardano price somehow manages to break past the $0.88 resistance barrier, it will reach the $0.92 line.