Investing.com – The remains by far the best performing cryptocurrency in the Top 10 on Tuesday morning, and is incidentally the only one showing 24-hour gains as of this writing.
Cardano has indeed gained more than 16% since yesterday, and more than 41% over a week, which has allowed it to regain since yesterday the 5th position in the ranking of the most important cryptocurrencies by capitalization.
By way of comparison, note that it loses 1.62% over 24 hours and gains 1% over a week. The lost 3.2% since yesterday and gained 4.3% over 7 days.
Why is Cardano exploding higher?
Recall that after an already positive development over the weekend, Cardano began to take off more frankly overnight from Sunday to Monday, starting from around $1.39 to a peak at 1.6350 overnight from Monday to Tuesday, at highest since December 3, 2021.
Among the recent positive news that undoubtedly played a role in the surge of Cardano, it will be recalled that competitor of Decentraland and Sandbox operating on the Cardano blockchain was announced on Friday evening.
Given the enthusiasm for all investments related directly or indirectly to the concept of metaverses, the association of the name Cardano with a new major metaverse could in itself be considered a bullish factor, although the direct impact on the Cardano remains unclear in its mechanics.
Cardano also arguably rose in anticipation of the planned launch of SundaeSwap, the first decentralized finance (DeFi) platform on the Cardano blockchain.
“SundaeSwap will launch as a fully functional beta decentralized exchange (DEX),” the project developers confirmed in a blog post published on Sunday. Projects will be allowed to create swap pools for their tokens after Tuesday, the team added.
Technical thresholds to watch on Cardano
After breaking through short-term resistance near $1.42 yesterday morning, which seemed to trigger a bullish acceleration, Cardano sent new positive signals by surpassing the 12/27 peak at $1.59, as well as the psychological threshold major of $1.60. ADA/USD also broke above the 23.6% Fibonacci retracement of the decline from the September 2, 2021 high to the January 10, 2022 low.
On the daily chart, the next most obvious potential target is the December 2 peak in the $1.75 area. Then, it is the psychological threshold of $1.80, then the Fibonacci retracement of 38.2% of the bearish trend mentioned above, towards $1.86.
On the downside, the first potential supports are at $1.60 and $1.50. A break below $1.50 would start to challenge Cardano’s positive profile on the daily chart
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