Cardano (ADA) price is up slightly by 0.7% today, September 5, to trade at $0.21 at the time of writing. This slight gain follows a surge in network activity, with DeFiLlama showing that DEX volumes on Cardano have increased three-fold. Meanwhile, an analyst has mapped Cardano’s path to $2.90.
Analyst Predicts ADA’s Move to $2.90
One analyst on X notes that the price of Cardano could post a 14 times gain in price that could push it from its price of $0.21 at the time of writing to $2.92.
The analyst noted that he believes the bottom could be in, and Cardano could be gearing up for a sizable move on the upside despite the ongoing concerns around interest rate hikes.
Crypto traders are currently pricing in the decision of the Federal Reserve at the next FOMC meeting that will occur on September 16. 50% of traders are expecting the Fed to hike interest rates by 25 basis points during that meeting, per data from CoinGape prediction markets.
However, BlackRock’s portfolio advisor says that he does not expect a 25 basis point hike to have a major effect on risk assets; hence Cardano price could defend the support at $0.20 after that monetary policy decision.
Cardano DEX Volumes Jump 3X to $7M
Data from DeFiLlama shows that the DEX volumes on Cardano have increased three times, from $2.01 million to $7.28 million. The surge points towards an increase in network activity because the decentralized finance (DeFi) TVL is also tipping north.
The TVL has also increased from 268.47 million ADA on August 28 to 299.81 million ADA, suggesting that the network has added 31.34 million ADA coins in less than two weeks.
The rising TVL comes shortly after DeFi platform RealFi announced that it will be launching on the Cardano network on October 1.
Still, DeFiLlama shows that the market cap of stablecoins available on Cardano has dropped from $67.95 million to $63.97 million.
ADA Price Prediction as Uptrend Holds
The price of Cardano has been moving within a rising parallel channel since June, suggesting that the altcoin remains in an uptrend despite multiple drops to test support.
ADA is now attempting to make another higher high and break out of the channel’s resistance at $0.22, with that move set to confirm that the long-term Cardano outlook is bullish.
The MACD line that is positive and moving above the signal line suggests that the momentum is favoring bulls, and Cardano could move to $0.22.
The AO bars that are also green and rising in length show that bulls are tightening their grip, and this could not only push Cardano to $0.22, but also extend the uptrend to the psychological resistance of $0.25.
However, if this uptrend fails, Cardano’s price might drop below the support at the midline of the rising channel and reach $0.17.
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