Cardano price pulled back slightly on Thursday morning as the recent momentum faded after the Senate withdrew the CLARITY Bill markup. ADA token was trading at $0.4050, down slightly from this week’s high of $0.4270. Still, there are several reasons why the ADA price will rebound this year.
Reasons Why Cardano Price May Rebound This Year
Cardano price has several catalysts that may boost its performance this year. First, the developers are continuing work on the Leios upgrade, which will be implemented this year. Leios is a major overhaul that aims to scale the network by introducing parallel processing while maintaining security.
Charles Hoskinson and the team hope this upgrade will attract more developers to the network over time. This is important because the biggest developers in the crypto industry, such as Aave and Uniswap, have largely ignored Cardano despite its popular brand name.
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In line with this, Cardano is implementing the Pentad proposals to bring more tier-1 stablecoins, oracles, and analytics tools to the network. The proposal is being funded by 70 million ADA tokens removed from the treasury.
Still, Cardano’s challenge is that other networks like Ethereum and Solana are so far ahead in development and adoption that it will struggle to catch up. The two have increased their transaction speeds over the years, and the upcoming Alpenglow upgrade is expected to boost Solana’s speed to over 100,000 transactions per second.
Another potential catalyst for the Cardano price is the launch of the Midnight mainnet this quarter, following the successful launch of the NIGHT token in December. NIGHT’s market capitalization has jumped to over $1.2 billion, making it one of the biggest tokens launched recently.
There is a chance that Grayscale will launch the spot ADA ETF it applied for later this year, which will likely lead to more demand from American investors.
Cardano Price Has Bullish Technicals
The daily timeframe chart shows that Cardano’s price has bullish technicals. It has moved above the Supertrend indicator and the 50-day Exponential Moving Average (EMA). In most cases, Cardano tends to jump by double digits whenever it moves to the green zone.
Cardano has also formed an inverse head-and-shoulders pattern, which is a common bullish reversal pattern in technical analysis. Therefore, the coin will likely rebound and hit the 38.2% Fibonacci Retracement level at $0.60, which is about 47% above the current level.
READ MORE: Crypto Market Rally Stalls as Senate Withdraws CLARITY Act Markup
