Since falling to the psychological support level of 0.90 US dollars on December 10th, Cardano ADA has shown a strong rebound of 26%. The rapid recovery has placed it in a bullish position above the 50-day EMA level, which may trigger its next rally.

ADA/BTC broke out after retesting EMA200

In the past few days, the strong daily return of BTC has helped the performance of ADA. As shown in the figure, ADA/BTC has retested the 200-day EMA level on the 4-hour chart.

The indicator typically tests higher lows in an uptrend and a sufficient Rebound from the EMA indicates a continuation of the bullish trend during the "altcoin season".

However, following the recent liquidation event, the altcoin season index briefly fell below 75. It still remains at a relatively high level of 69 USD, which means that altcoins like ADA may continue to outperform BTC in the short term until the top cryptocurrencies re-enter the price discovery phase, breaking the historical high of 104,670 USD.

Cardano TVL rose by 84 million US dollars

Since December 10th, the DeFi protocols on the Cardano network have also significantly increased, increasing investor confidence. Data from DeFiLlama shows that the total locked value (TVL) of ADA has risen from $5.6 billion to $6.44 billion within 48 hours.

The rise in TVL is led by Liqwid (lending), Minswap (DEX), and Indigo (lending), all of which have seen a 10% increase in locked value in the past seven days.

Cardano's open interest (OI) also increased by $140 million in the past day, reaching $830 million on December 10th. Although OI has decreased from $1.18 billion on December 3rd, the current growth coincides with the price increase, indicating that the interest of futures traders continues to exist.