- A potential recovery in Cardano price could face strong resistance at the $0.3 barrier.
- The total stablecoin supply on the Cardano network reached approximately $47.8 million, according to DefiLlama.
- The declining trend in daily exponential moving average (20, 50, 100, and 200) indicate market sentiment is strongly bearish.
ADA, the native cryptocurrency of the Cardano blockchain, surged 5.3% during Wednesday’s U.S. market hours to current trade at $0.275. The buying pressure aligns with broader market recovery as investors stabilizing from the recent accelerating geopolitical tension including IRAN. However, the Cardano price gained additional traction as its stablecoin supply surges to 40% in the past week, providing a positive backdrop. Will the coin price follow?
ADA Gains Momentum as Stablecoin Supply on Cardano Surges Past $47M
On Wednesday, March 4th, the crypto market witnessed a sudden spike in buying pressure, raising its market capitalization to $2.45 trillion. The broader market bullish momentum surged with Bitcoin price reclaiming $70,000 amid renewed inflow into spot BTC ETFs and positive regulatory chatter.
Following the momentum, the Cardano price jumps over 5% to hold its position above $0.27. Meanwhile, ADA’s market cap is at $9.87 billion, and the 24-hour trading volume is at $984 million.
The total value of stablecoins that circulate in the Cardano blockchain (market capitalization) is around $47.8 million, according to DefiLlama data. This amount represents a large jump in the weekly cost of over $14 million, or 42% increase.
Circle’s USDCx (a bridged version of USDC) got released on Cardano’s mainnet recently with more than 15 million tokens minted soon after deployment last week. Meanwhile, Moneta’s USDM stablecoin has experienced further issuance, with the number of tokens minted rising above 15.8 million units – the latest 1 million token mint.
USDCx now has the top spot among Cardano stablecoins with about 37-38% stablecoins value on the network. Other assets are USDM, Anzens USDA and Djed.
This development increases the utility of the network for real-world applications and could offer indirect support to the ADA in terms of demand for ADA through increased transaction activity and ecosystem adoption over time.
Cardano Price Faces Risk of Reversal Amid Strong Overhead Resistance
On February 25th, the Cardano price gave a decisive breakout from the resistance trendline of a falling wedge pattern. This breakout signaled the end of a four month correction trend and raised market’s expectations for renewed recovery.
However, the ADA price continued to slip lower amid geopolitical tension. As the broader market regains momentum, the Cardano price holds its reversal pattern. If the buying pressure persists, the buyer could flip overhead resistance of $0.3 into potential support.
With sustained buying, the coin price could jump another 35% to hit $0.367.
The momentum indicator RSI (Relative Strength Index) at 46% suggests neutral market sentiment.
On the contrary, if ADA falls within the wedge pattern against, the bullish theses will get invalidated and will be marketed as fake breakout. If materialized, the $0.24 level stands as key bottom support for crypto buyers.
