The Cardano price bounced back after slumping to a multi-week low. The coin is trading at $1.89, which is almost 100% above the lowest level yesterday. According to CoinMarketCap, the coin has a grown its market capitalization to more than $59 billion, making it the fourth-biggest cryptocurrency in the world.
Why Cardano is surging
There are two main reasons why the ADA price is surging today. First, after falling to below $30,000, the price of Bitcoin has bounced back today. It has jumped to $42,000, bringing its total market capitalization to more than $779 billion. In other words, it has added more than $40 billion in a market cap as I predicted in my Bitcoin forecast earlier today. In the past, most altcoins tend to follow Bitcoin.
Second, Cardano is surging as earlier investors attempt to recoup their losses. This is after most of them saw their profits dropping by more than 60% yesterday. In the past, sharp contractions tend to be followed by a relief rally.
Further, from a fundamental side, many investors still believe in the ecosystem that Charles Hoskinson built. Today, Cardano has become one of the largest blockchain project in the world. In its recent Africa-focused event, the developers managed to ink a deal with the education ministry that will touch millions of students. It is still too early to tell whether the project will succeed. So, what next for ADA prices?
Cardano price prediction
The daily chart shows that the ADA price declined sharply during the crypto sell-off. As it dropped, Cardano’s price reached a low of $0.9560. This was an important price since it was at the same level as the 61.8% Fibonacci retracement level. It was also a notable price since it was slightly above the 200-day moving average. Today, the price has pared back the previous losses and is now approaching the 23.6% retracement level at $1.900.
Therefore, at this point, it is too early to tell whether the coin will retest its all-time high. For this to happen, bulls will need to push the price above the 23.6% retracement level. If this happens, we can’t rule out a more forceful jump to its all-time high. However, another drop below the lowest level will be catastrophic for buyers.