Bitcoin continues its upward trend with a 6% gain, bringing joy to crypto investors on the second day of the year. Enthusiasm grows as expectations for an ETF approval increase, fueling a risk appetite that has led to double-digit gains for many cryptocurrencies in the last 24 hours. ADA Coin, with a market cap of $22 billion, stands as the eighth-largest cryptocurrency, though it has drifted from its top-four position during the ETH Merge period. While it has not approached its late 2021 peak of over $3, the potential for surpassing this level in 2024 would not be surprising.
Should the cumulative value of cryptocurrencies exceed $6 trillion, ADA Coin’s price could soar above $5. The diversity of cryptocurrencies and the emergence of professionally managed crypto ventures in 2021, unlike previous years, should not be overlooked. While “Ethereum killers” were limited in 2021, 2022 and 2023 saw numerous Layer 1 and Layer 2 networks distributing airdrops, introducing tokens into circulation, and transitioning to mainnet, setting the stage for a competitive 2024.
Turning to the short and medium-term outlook, ADA Coin currently finds buyers at $0.625. CEOs awaiting ETF approval are sharing cryptic and exciting messages, contributing to the dynamic nature of cryptocurrencies. ADA Coin investors have been experiencing a narrow trading range, and it’s crucial to see daily closes above $0.64.
If ADA Coin can overcome the resistance between $0.65 and $0.67, it could potentially climb back to the $0.9 to $1.24 range seen in the first half of 2022. Closures above this range could bring targets of $1.61 and $2.15 into focus. For now, investors are turning to riskier alternatives with the promise of higher returns, but a shift of liquidity back to major altcoins at some point would not be unexpected.