In recent times, Cardano (ADA) has been at the forefront of discussions due to its price movements, sparking conversations about its potential price targets for mid-2025. Both technical indicators and on-chain analytics have been sending a mix of signals, drawing the attention of investors and analysts alike.
Let’s delve into the information available to assess whether ADA’s price has the potential to achieve these anticipated levels.
Assessing Cardano’s Price Momentum: Is a Breakout Imminent?
Cardano is currently priced around $0.72, showing a surge of more than 20% in the past 24 hours. This notable increase indicated a significant breakout above its 50-day and 200-day moving averages, situated at $0.39 and $0.38, respectively.
Such a surge typically signals strong bullish momentum in the short term, with buyers evidently leading the way.
Furthermore, the Relative Strength Index (RSI) rose to 82.81, pushing the altcoin into overbought territory. While this could indicate intense buying pressure, it also suggests a possible short-term correction as traders consider profit-taking strategies.
Another crucial point to note is the Fibonacci retracement level, where Cardano surpassed the 0.618 retracement level at over $0.7 – a pivotal resistance zone. Breaking through this level might pave the way for reaching $0.80, a significant target on its upward journey.
Simultaneously, the MACD indicator displayed a positive trend, with its line steadily ascending and reinforcing the prevalent bullish sentiment. However, sustaining this momentum will be crucial to overcoming the impending resistance level.
Exploring Cardano’s On-Chain Metrics: Activity and Accumulation Trends
Current on-chain activity presents an intriguing perspective on Cardano’s potential growth.
Recently, daily active addresses surpassed 58,000 in the latest trading session, as per Santiment’s data, highlighting a noticeable surge in network utilization.
Additionally, over the past month, the 30-day active addresses reached an impressive count of 637,000, underscoring consistent user involvement.
These statistics indicate that Cardano’s ecosystem is gaining traction, indicating positive signs for its sustained growth in the long term.
Derivatives Data Analysis: Long Liquidations Indicating FOMO
The recent surge in Cardano’s price has triggered a rise in trading activities in the derivatives market.
Data from Coinglass revealed a substantial increase in long positions accompanied by significant short liquidations, reflecting traders’ growing confidence while also highlighting the risks associated with excessive leverage. Notably, the liquidation chart revealed that most liquidations occurred near $0.55, suggesting that this level could now serve as a strong support area.
Moreover, funding rates have consistently remained positive throughout the rally, indicating that traders are willing to pay a premium to maintain their long positions.
This bullish sentiment aligns with the general optimism surrounding Cardano’s price trends. Nonetheless, it’s important to exercise caution, as high leverage could magnify volatility in the event of a market correction.
Cardano’s recent market performances and network expansion present encouraging signs for a potential upsurge. However, achieving the ambitious price target will heavily rely on its capacity to sustain bullish momentum, surmount key resistance levels, and leverage its ecosystem’s growth.