Cardano’s price has risen to $0.404805, up 6% from the previous day, as the coin’s 24-hour trading volume reaches $600 million. This is the ADA’s highest level in nearly two weeks, up 8% in a week and 59% in a month.
With increased usage of the DJED stablecoin, which is based on Cardano, being one of the key drivers of its recent growth, this makes ADA one of the best-performing major cryptocurrencies on the market. And since the rise of DJED also shows that Cardano is becoming more useful, this suggests that ADA could be one of the biggest winners on the market this year.
Cardano price today ADA USD DATE TODAY: 01 0.3876526
Cardano Price Prediction
The data provided by ADA suggests that the altcoin is now experiencing a sizable spike. Its relative strength index (purple) soared up to 70 or above in the previous several weeks and is still there, indicating more upward momentum.
Related: ETH, BTC, and Cardano Price Predictions for January 31, 2023
Even more encouragingly, the coin’s 30-day moving average (red) is getting closer to passing above its 200-day average (blue). If it crossed the longer-term average, a “golden cross” would be created, which might indicate a bigger breakthrough.
In other words, there’s a significant chance that in the near future, ADA might easily go from $0.404805 to $0.5 and beyond, exceeding its current level.
There are now a lot of reasons to be optimistic about ADA and Cardano. Particularly, the launch of the Cardano-based Djed (DJED) stablecoin has significantly increased demand for ADA.
Djed is a stablecoin that is over-collateralized, which means it requires more cryptocurrency backing than it appears to be worth on paper. A significant amount of its backing is currently made up of ADA, which currently stands at 28.3 million ADA in its reserves (and rising).
It goes without saying that Djed’s reserves will grow along with the stablecoin’s rising demand, given that it is already listed on the Cardano-based DEXes MuesliSwap and Minswap. More ADA will subsequently be taken off the market and added to these reserves, reducing the supply and driving up the price.
The market is already noticing this effect given the rapid rise in ADA with the introduction of Djed. Additionally, the stablecoin is certain to attract a lot of new users given how Djed has been created.
In particular, Djed is backed by a reserve of various cryptocurrencies and will have an over-collateralization ratio of between 400% and 800%. Djed is intended to be protected against many of the threats listed by Terra, which infamously crashed last year, by this configuration.
Related: Prediction for the Cardano price on January 27, 2023: Today’s ADA Price
Shen (SHEN), one of its primary reserve tokens, has also been introduced at the same time as Djed. It’s noteworthy to note that users will have to pay a fee in ADA when either minting or burning SHEN (or DJED), which will ultimately increase ADA demand.