Recent price action has seen Cardano’s ADA break out of a bullish flag pattern on the daily chart, indicating the potential for further appreciation. As of the latest update, ADA is trading at $1.12, marking a remarkable 7.11% surge in the past 24 hours.
Analyzing the charts reveals the presence of bullish formations like a cup-and-handle pattern and an inverted head-and-shoulders formation, reinforcing the likelihood of an extended uptrend.
If ADA manages to breach the resistance level at $1.20, it could set its sights on the significant psychological milestone of $1.40.
Could Ripple’s Stablecoin Collaboration be Fueling ADA’s Momentum?
The prospect of a partnership between Ripple and Cardano on the RLUSD stablecoin has infused optimism among market participants.
Notably, Charles Hoskinson, the founder of Cardano, has highlighted the importance of stablecoins within the ecosystem, hinting at potential integration discussions related to RLUSD.
The recent surge in XRP’s price could indirectly be supporting Cardano’s positive price action. The speculated partnership, if materialized, has the potential to significantly boost Cardano’s DeFi capabilities, attracting a broader audience of developers and users.
Technical Indicators Point towards Further Upside Potential
Key technical indicators underscore a bullish sentiment surrounding Cardano’s future price trajectory. The Relative Strength Index (RSI) currently sits at 61.7, indicating strong upward momentum within sustainable levels.
Moreover, the Moving Average Convergence Divergence (MACD) has displayed a bullish crossover, signifying an increase in buying pressure. These indicators, in conjunction with the breakout patterns observed, suggest that ADA’s uptrend could persist in the days ahead.
If the positive momentum endures, a breakthrough above $1.20 could pave the way for a substantial price surge.
Increased Active Addresses Signal Network Growth for ADA
The rise in Cardano’s on-chain activity, particularly the escalating daily active addresses, serves as another bullish indicator. On January 16th, the network recorded over 46,000 active addresses, underscoring a surge in network utilization.
This consistent uptrend in user participation showcases mounting trust in Cardano’s ecosystem and its ability to deliver lasting value.
Hence, the network’s expansion might play a pivotal role in sustaining price levels throughout the ongoing uptrend.
Positive Market Sentiment Backs Up Bullish Outlook
Will Cardano Achieve the $1.40 Mark?
Considering the breakout, favorable technical signals, and increasing on-chain activity, Cardano’s ADA appears well-equipped to hit $1.40, especially if it overcomes the $1.20 hurdle in the near term.