Cardano’s Shocking Comeback: Can $1 Hold or Will It Crash Again?

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In a positive turn of events for cryptocurrency enthusiasts, Cardano (ADA) has surpassed the $1 threshold, marking a 7.5% increase in value over the past day. This upward trend comes as the overall crypto market bounces back. Earlier this week, however, ADA experienced a downward spiral, reaching its lowest point of $0.876 during Monday’s trading session, following a widespread sell-off.

At present, the cryptocurrency sector is experiencing growth, as multiple digital currencies are seeing increases in value following the release of the most recent Consumer Price Index (CPI) figures. Surprisingly, core inflation dropped to 3.2% in December – a decrease that was not anticipated by experts.

According to the December Consumer Price Index report and a mild increase in wholesale prices, it seems like inflation isn’t plummeting significantly but neither is it showing clear signs of escalation.

This has given a lift to both traditional and cryptocurrency markets, with their values rising day by day. Currently, Cardano (ADA) is being traded at $1.05 and is experiencing an increase of 7.57% over the past week.

What’s next?

On January 13, Cardano found support at $0.876, triggering a resurgence. On Tuesday, the ADA price aimed to break past the daily Simple Moving Average (SMA) 50 at $1.01; bulls succeeded in pushing through this level during today’s trading session and surpassed it, reaching peaks of $1.069.

In the future, if ADA maintains a value higher than $1 that aligns with the Daily Simple Moving Average 50, it is less likely to revert back to its old price range.

If we manage to reach this point, Cardano (ADA) may aim for prices around $1.15 and $1.32. Breaking past these thresholds could indicate more upward momentum, potentially propelling ADA towards $2. At present, the Daily Relative Strength Index (RSI) is in a favorable position, providing bulls with an edge.

On the negative side, $0.87 and $0.76 serve as significant points of resistance. If Cardano (ADA) cannot maintain its value above $1, it could face increased selling, potentially leading to a test of these support levels.

Currently, there’s a lot of anticipation for the upcoming Plomin hardfork. Last week, a fix (hotfix) for the Cardano node version 10.1.4 was introduced. This fix tackles a potential stability concern found during pre-production and aims to ensure smooth block production before the Plomin hardfork. In simpler terms, we’ve made an update to improve the stability of the Cardano network prior to the Plomin hardfork.

It’s recommended that all Cardano stake pools and relay services update their nodes to version 10.1.4. This is in response to an anticipated Distributed Denial of Service (DDoS) threat, which could arise post the Plomin hard fork on the mainnet.

To prevent a possible attack after the Plomin upgrade on Cardano’s main network, it’s advised that stake pool operators and relay services update their nodes to version 10.1.4.

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2025-01-16 17:50