Cardano’s network activity has recently experienced a significant increase, reaching levels not seen since 2023. This surge has sparked discussions about the future trajectory of ADA, especially after a minor pullback from the $1 threshold.
New Milestone Achieved by Cardano!
Recent reports indicated that ADA managed to hit the $1 mark last week before facing some downward pressure. The subsequent price correction led to a 6% drop in ADA’s value over the past 24 hours. Despite this, a substantial number of ADA addresses, totaling 2.97 million, remained profitable, representing 67% of the overall addresses holding ADA.
Amid market fluctuations, a tweet from IntoTheBlock highlighted a crucial development for Cardano. The tweet revealed a surge in ADA’s network activity, particularly with a notable increase in the number of new user addresses compared to June 2023.
Heightened network activity suggests increased user or investor engagement, often correlating with price surges. Additionally, long-term investors displayed confidence, as seen in the consistent graph depicting addresses holding ADA for over a year.
Potential Breakout Scenario
While the discussed metrics painted an optimistic picture for ADA’s future price action, further analysis was conducted to determine if these factors could propel ADA into a new price range between $1 and $1.5. Presently, ADA is trading at $0.984.
Encouragingly, the decrease in ADA’s price was accompanied by a drop in trading volume, indicating a possible shift in trend direction. However, the decline in social volume suggested a waning interest in Cardano, exacerbated by the recent price correction that lowered ADA’s MVRV ratio.
Technical indicators, specifically the MA cross, signaled a prevailing bullish sentiment, with potential support near the 9-day MA in the current market environment. If ADA breaches this level, it could revisit the $0.6-$0.8 range.
Upon a resurgence in network activity coupled with declining volume leading a bullish rally, ADA might retest the $1 resistance. Surpassing this barrier could set the stage for ADA to target $1.5 in the near future.