Cardano’s price has gone up by 6% in the last day, reaching $0.404805 as the coin’s 24-hour trading volume passes $600 million. With ADA going up 8% in a week and 59% in a month, this is its highest level in almost two weeks.
This makes ADA one of the best-performing major cryptocurrencies on the market. One of the main reasons for its recent growth is the rise in use of the DJED stablecoin, which is built on Cardano. And it suggests that ADA could be one of the biggest winners on the market this year, since the rise of DJED shows that Cardano is becoming more useful.
The price of Cardano today is 0.4050229 USD per ADA.
Cardano Price Forecast
Indicators from the ADA show that bitcoin seems to be in the middle of a big rise. In the past few weeks, its relative strength index (in purple) shot up to 70 or above, and it is still there, showing that it is still going up.
Related: Predictions about the price of Cardano: Today’s ADA price, February 2, 2023
The coin’s 30-day moving average (red) is getting closer to crossing above its 200-day average, which is even better news (blue). If it crossed the longer-term average, it would make a “golden cross,” which could mean a bigger break.
In other words, there’s a good chance that ADA could easily go from $0.404805 to $0.5 and beyond in the next few days, going above where it is now.
And there are many reasons to be optimistic about ADA and Cardano right now. The release of the stable coin Djed (DJED), which is based on Cardano, has led to a sharp rise in the demand for ADA.
Djed is an over-collateralized stable coin, which means that it needs more cryptocurrency backing than it is worth on paper. It already has 28.3 million ADA in its reserves, so ADA makes up a big part of this backing (and is rising).
Since the stablecoin is already listed on the Cardano-based DEXes MuesliSwap and Minswap, it goes without saying that Djed’s reserves will grow as demand for the stablecoin does. Because of this, more ADA will be taken off the market and put into these reserves. This will lower the amount of ADA in circulation and drive up the price.
Since Djed came out, the price of ADA has gone up sharply. The market is already seeing this effect. Also, because of how Djed is made, the stablecoin is likely to gain a lot of new users.
In particular, Djed will have an over-collateralization ratio of between 400% and 800% and will be backed by a reserve of several cryptocurrencies. This set-up is meant to protect Djed from many of the dangers that Terra, which famously fell apart last year, warned about.
Related: Prediction for the Cardano price on January 27, 2023: Today’s ADA Price
Shen (SHEN), which is mostly used as one of its key reserve tokens, was also released at the same time as Djed. It’s interesting to know that users will have to pay a fee in ADA when minting or burning hen (or DJED), which will increase the demand for ADA in the long run.
