Cardano (ADA) Price Takes off as Launch of Stablecoin Nears

The Cardano (ADA) price broke out from a descending resistance line and is targeting $0.425. However, the Cardano short-term price prediction is bearish due to the creation of a bearish pattern.

Jan. could bring one of the most positive Cardano news yet. Djed, a crypto-backed overcollateralized stablecoin which ADA backs, will launch on the Cardano blockchain platform this month.

Djed will be over-collateralized by 400% to 800%. No exact date for the release has been specified yet. The total value locked (TVL) in the Cardano ecosystem has skyrocketed, possibly in anticipation of the launch.

Cardano Price Breaks out From 256-Day Resistance Line

Since May 10, the price of Cardano has fallen below a declining resistance line. Following that, the price dropped on Dec. 30 to a low of $0.238. But, the ADA price has gone up since then.

The price was rejected by this line four times throughout the downward movement (red icons). The most recent occurred on Jan. 14. Since lines become weaker each time they are touched, the ADA price broke out on Jan. 20 and reached a high of $0.387 on Jan. 22. If the increase continues, the next resistance would be at $0.425.

At the time of the breakout, the line had been in place for 256 days. Breakouts from such long-term structures often lead to considerable increases. Therefore, a movement above $0.425 could accelerate the increase further.

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