With bullish sentiment sweeping across the market, Cardano [ADA] has emerged as a standout performer, showcasing significant gains. However, the recent development of breaking through a critical resistance level hints at ADA potentially making strides towards the $1 mark.
Cardano’s Recent Price Surge
Over the past 24 hours, ADA witnessed a noteworthy upsurge of more than 6%, culminating in a current trading price of $0.3864.
Following this surge, an impressive 1.4 million ADA addresses have now moved into profitable territory, constituting over 31% of the total Cardano addresses.
Encouragingly, an even larger number of addresses are poised to reap profits in the forthcoming days. A prominent crypto analyst, World Of Charts, recently highlighted Cardano’s breakout from a bullish falling wedge pattern.
This pattern materialized back in December 2023, and since then, ADA has maintained a consolidative phase within it. The analyst’s tweet indicated that this breakout could potentially pave the way for ADA to approach the $1 mark.
Pre-$1 Targets for ADA
Delving into Cardano’s on-chain data, CryptoCrypto sought to analyze how various metrics were influenced by the recent price surge.
According to our scrutiny of Santiment’s data, ADA witnessed a substantial surge in trading volume alongside its price spike. Typically, a concurrent rise in volume and price lays the groundwork for a bullish market trend.
Furthermore, the MVRV ratio exhibited an uptick, signaling a bullish sentiment. Moreover, whale activity surrounding ADA remained notably high over the past week.
However, a contrasting view emerged from Coinglass’ data, which revealed a bearish aspect. The long/short ratio for Cardano saw a drop in the previous 24 hours, indicating a prevalence of short positions over long positions, raising some concerns.
Subsequently, an examination of the token’s daily chart unveiled that Cardano was once again nearing a resistance level. The MACD technical indicator favored a bullish outlook, hinting at a potentially successful breakthrough above the resistance point.
If this materializes, investors could anticipate ADA’s initial target of $0.45, a critical hurdle to overcome before embarking on the journey towards $1 over the ensuing weeks or months.
In the event that the bullish momentum wanes, a retracement to $0.3 wouldn’t be unexpected.
Interestingly, the Relative Strength Index (RSI) exhibited a decline following a sharp ascent, signaling a probable price correction in the near future.