Cardano price was hovering around its highest level in 5 months on Friday as most cryptocurrencies built on their post-Shanghai gains. ADA has outperformed Ethereum as the best-performing altcoin this year. Cardano has climbed nearly 13% in the past week and gained 75.55% in the year to date. The altcoin currently ranks as the 7th largest cryptocurrency by market cap after XRP and ahead of Dogecoin.
Crypto Market Sentiment
Cardano price has staged a strong comeback in the past few weeks, earning a place among the best-performing cryptocurrencies this year. At press time, the altcoin was trading 1.39% higher at $0.4310. ADA’s market cap has jumped by 3.83% in the past 24 hours to $15 billion, while the total volume of the coin traded increased by 65.96%.
Most cryptocurrencies have been in the green for the past two days as investors digest the latest decline in the US inflation data. The slip in the CPI has raised hopes that the Federal Reserve might hold back from its interest rate hike cycle. Risk assets such as cryptocurrencies and stocks tend to do well in an environment with lower interest rates.
The US dollar index, which measures the performance of the US currency, has been hovering roughly around its lowest level in a year. The US Treasury yields have ticked higher in the past 24 hours despite the positive economic data released this week. The yield on the 2-year Treasury has moved higher to 4.097%, while the 10-year Treasury yield increased to 3.52%.
Altcoins have also been moving higher for the past few days off the back of Ethereum’s successful Shanghai upgrade. The Ethereum network completed the Shapella launch on Thursday morning, pumping ETH’s price higher. Being the largest altcoin, Ethereum’s performance largely influences the performance of most altcoins.
Cardano Price Analysis
Cardano price has been on a steady bull run for the past few weeks, climbing to its highest level since November. ADA has formed an ascending channel shown in yellow on the daily chart. The altcoin has managed to maintain its position above the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has ticked higher to the overbought zone.
Therefore, the Cardano price is likely to continue moving higher as bulls push the price higher to the next resistance level at $0.500. On the other hand, a move below the key support level at $0.400 will invalidate the bullish view.