Cardano (ADA) has seen quite a price rally in the last few days. The asset’s price has risen by 6.2% in the last 24 hours, 26% in the last week, 13.7% in the 14-day charts, and 2.8% over the previous month, according to CoinGecko’s ADA data. ADA is one of the few cryptocurrencies trading in the green zone across nearly all time frames. Let’s look at two reasons why ADA is up right now.
Two Reasons Why Cardano Is Facing A Price Rally
The first reason why Cardano (ADA) may be rallying is its transition into the Dijkstra era. The project also saw the recent approval of a protocol roadmap for treasury funding. This will mark the first time a blockchain’s core development will be funded and validated directly by the community. Cardano has historically been one of the most developmentally active blockchain. The roadmap for new updates may have elevated investor sentiment.
Another reason for Cardano’s (ADA) price rally could be an increase in whale accumulation. According to Santiment data, ADA whales accumulated 240 million ADA over the past five days. Whale accumulation is often seen as a bullish signal. Whales may be anticipating a price rally in the near future.
We will also have news about the CLARITY Act soon. The Senate is expected to take a vote in the coming days. If passed the legislation could lead to a surge in cryptocurrency investments. Cardano (ADA) could potentially continue its bullish trajectory if the law is passed.
Also Read: CLARITY Act Vote Within 4 Days: Will It Pass?
Despite its rally, there is a chance that Cardano (ADA) could face a correction, or enter a sideways trajectory. The cryptocurrency market is still in bear territory. Bitcoin (BTC) is struggling to gain momentum and is facing resistance around the $64,000 price level. Cardano (ADA) may not see much positive price action without Bitcoin rallying.
