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Cardano (ADA)the ninth-largest cryptocurrency by market capitalization, rose above the $1 mark, rising 7.5% in the past 24 hours as the broader cryptocurrency market recovered. This follows an earlier sell-off this week, with ADA falling to lows of $0.876 in Monday's trading session.
The cryptocurrency market is currently on the rise, with many crypto assets recording gains as investors react to the latest CPI data. Core inflation fell to 3.2% in December, lower than expected.
The December CPI report, combined with the relatively weak reading on wholesale prices, may indicate that although inflation is not falling significantly, it is also not showing signs of increasing.
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This has provided a boost to markets, including cryptocurrencies, which are trading higher on a daily basis. At the time of writing, ADA is trading at $1.05 and is still up at 7.57% weekly.
What's next?
Cardano It reached support at $0.876 on January 13, sparking a comeback. Tuesday's ADA price recovery targeted a breakout of the daily 50 simple moving average at $1.01; The bulls pushed further during today's trading session, breaching this crucial barrier and reaching highs at $1,069.
In the future, ADA should maintain momentum above $1, which coincides with the 50 SMA, so as not to return to its previous range.
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If this is achieved, ADA could target $1.15 and $1.32. A break above these levels could indicate further upside potential, possibly pushing ADA towards $2. The daily RSI is in positive territory, giving the bulls an advantage.
On the downside, $0.87 and $0.76 act as major support levels. If ADA fails to stay above $1, it could see renewed selling pressure, testing these support levels.
Meanwhile, expectations remain high for the Bloomin hard fork. A hotfix for the Cardano 10.1.4 node, which addresses a potential stability issue discovered in pre-production and helps keep block production stable ahead of the Plomin hard fork, was released last week.
All Cardano stakes and relays are expected to be upgraded to node version 10.1.4 to mitigate a potential DoS attack following the Plomin hard fork on the mainnet.
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