ADA Skyrockets 11%, Cardano Hits $1 Billion: What's Going On?

Cardano (ADA) is in the spotlight following a rise in market activity and price movement. According to CoinMarketCap's most recent data, Cardano trade volume surpassed $1 billion in the last 24 hours, representing a 72% rise, while ADA's price increased by 11%.

Cardano's ADA surged with major cryptocurrencies as Bitcoin (BTC) topped $94,000 in the early Wednesday session, indicating improved investor sentiment.

A daily trading volume increase of over $1 billion marks one of ADA's most active trading days in recent weeks. High volume at rising prices is often interpreted as a sign of renewed confidence among traders, implying that this rise may have legs rather than a temporary pump.

If this trend continues, ADA may likely retest important resistance levels around $0.8 to $0.9, with a breakout potentially bringing the crypto asset closer to $1 in the short term.

At the time of writing, ADA was up 10.35% in the last 24 hours to $0.7054 and up 17% weekly. Cardano has climbed to the ninth spot in the crypto market rankings, with a market capitalization of $24.83 billion, pushing TRON to 10th place, with a market value of $23.63 billion.

What's next for ADA price?

ADA surpassed the critical resistance at the daily SMA 50 currently at $0.688, which has mostly limited its price since January of this year, amid a broader crypto market rebound. This is crucial because the 50-day and 200-day moving averages are widely employed to depict medium and long-term trends, respectively.

A clear bullish reversal beginning April 21 has boosted ADA's price, with a focus on the next key barrier at $0.757, the daily SMA 200. If buyers push the price above this important level, ADA will exit its current trading range and could rise to $0.83, then $1.03.

On the contrary, if the ADA price falls below the 50-day SMA, the bulls will attempt to halt the decline at the $0.58 support. If this occurs, the chances of a climb over the 50-day SMA increase.