With the current bullish market sentiment, Cardano [ADA] has seen a substantial increase of close to 100% in recent days, positioning it for further growth based on its positive price momentum.
While overall market sentiment has been positive, various assets have seen price corrections, with some showing significant gains.
Cardano stands out as one of the assets likely to extend its upward trajectory, supported by factors such as the prevailing market sentiment, rising volume in large transactions, and positive price trends.
Evaluation of Cardano’s Technical Indicators and Key Thresholds
As per CryptoCrypto’s technical analysis, ADA faced a notable resistance level near $0.77, currently striving to overcome this hurdle.
Given recent price movements, breaching and closing above $0.80 could potentially trigger a further surge of about 30% for the altcoin.
In the latest update, ADA was observed trading above the 200 Exponential Moving Average (EMA) on the daily chart, signaling an uptrend.
Simultaneously, the Relative Strength Index (RSI) for the altcoin entered the overbought zone, hinting at a probable correction or decline in price.
Despite these indicators, the prevailing market sentiment suggests that ADA is unlikely to experience a corrective phase, though consolidation near the resistance level remains a possibility.
Positive On-Chain Metrics Supporting Cardano’s Outlook
Besides the technical analysis, on-chain metrics provide further backing to ADA’s optimistic prospects.
Coinglass reported a 6.9% rise in ADA’s Open Interest (OI) over the past four hours and a 3.2% increase within the last hour, indicating robust trader engagement.
Furthermore, IntoTheBlock highlighted a 12% uptick in large transaction volumes over the past 24 hours, signifying increased participation from whales and institutional players as prices near a critical threshold.
With these metrics aligning, it appears that bulls are currently in control of ADA and could bolster its efforts to breach the significant resistance level.
As of now, ADA was priced around $0.73, marking a gain of more than 3.9% in the last 24 hours.
During this period, trading volume saw a decline of 42%, signaling reduced involvement from traders and investors compared to the previous day.