Cardano Price Targets $2.90 as ADA DEX Volume Triples

Cardano (ADA) price edged 0.7% higher on September 5, trading near $0.21 as growing network activity strengthened optimism around the altcoin. Cardano decentralized exchange volumes have tripled recently, while one crypto analyst believes ADA could eventually rally toward $2.90.

According to the analyst, Cardano may have already established a market bottom and could be preparing for a substantial recovery. The analyst outlined a potential 14-fold increase from current levels, placing a longer-term ADA price target around $2.92.

However, monetary policy remains an important factor for crypto markets. Traders are focused on the Federal Reserve's September 16 FOMC meeting, with prediction markets showing roughly 50% odds of a 25-basis-point interest rate hike. A BlackRock portfolio adviser reportedly expects such an increase to have limited impact on risk assets, potentially allowing ADA to maintain support around $0.20.

Cardano's improving DeFi activity is also supporting the bullish outlook. DeFiLlama data shows DEX trading volume on the network surged from $2.01 million to $7.28 million. Total value locked has climbed from 268.47 million ADA on August 28 to 299.81 million ADA, representing an increase of 31.34 million ADA in less than two weeks.

The growth comes ahead of RealFi's planned October 1 launch on Cardano. However, one metric has weakened, with Cardano's stablecoin market capitalization declining from $67.95 million to $63.97 million.

From a technical perspective, ADA has traded within a rising parallel channel since June. Cardano price is now testing resistance around $0.22, and a successful breakout could reinforce the broader bullish trend.

Momentum indicators also favor buyers. The MACD remains positive and above its signal line, while rising green Awesome Oscillator bars indicate strengthening bullish momentum. Clearing $0.22 could open the door for ADA to target the psychological $0.25 resistance level.

Despite the bullish signals, downside risks remain. Failure to maintain the rising channel could push Cardano below its intermediate support and potentially toward $0.17. For now, strengthening Cardano DeFi activity and bullish technical momentum are keeping attention on ADA's next breakout attempt.