The cryptocurrency market has begun showing signs of recovery, reflected in Cardano's (ADA) 5% price increase.
Crypto Market Recovery
After days of decline, the crypto market began showing signs of revival early in Thursday's session. Bitcoin rose past the $97,000 mark again, and several cryptocurrencies, including Cardano, turned green, while others posted double-digit gains. The recovery comes amid new capital inflows into the market, sparking optimism that the worst of the recent volatility might be behind us. USDT inflow into exchanges surpassed 450 million for the first time since February 3, indicating potential renewed buying power entering exchanges.
ADA Price Dynamics
Cardano (ADA) began to rebound from lows of $0.731 on February 19. The rebound continued in the early Thursday session, with ADA up 4.33% in the last 24 hours to $0.782. ADA is also slightly higher weekly, up 1.10%. Cardano reached a high of $0.828 on February 17 before falling to $0.813 the following day, indicating that bearish sentiment persists with traders selling on rallies.
Prospects for ADA
To continue the upward trend, bulls will need to push and sustain ADA's price above the short-term barrier of $0.82 to begin moving towards the 50-day SMA at $0.90. Currently, ADA is consolidating between its 50- and 200-day moving averages at $0.906 and $0.647, respectively. This scenario could lead ADA to break out of its current range and aim for levels around $1.
The crypto market and Cardano, in particular, are showing early signs of recovery, which might suggest a decrease in recent volatility. With continued capital inflows, ADA's situation may improve.
