Cardano’s digital currency ADA has recently broken out of a bullish flag pattern on the daily chart, indicating the potential for further price increases. Currently, ADA is being traded at $1.12, showing an impressive 7.11% surge in the past 24 hours.
Technical analysis reveals other positive patterns, like a cup-and-handle formation and an inverted head-and-shoulders pattern. These patterns strengthen the likelihood of a prolonged uptrend for ADA.
If ADA successfully surpasses the $1.20 resistance level, it could aim for $1.40 as a significant psychological target.
Could Ripple’s Stablecoin Collaboration Propel ADA’s Momentum?
The news of a potential partnership between Ripple’s stablecoin RLUSD and Cardano has sparked optimism among investors.
Cardano’s founder, Charles Hoskinson, highlighted the significance of stablecoins within the ecosystem and ongoing talks about integrating RLUSD.
The recent surge in XRP’s market value might be indirectly boosting Cardano’s price action. Moreover, if this collaboration materializes, it could greatly enhance Cardano’s DeFi capacities, attracting more developers and users.
Technical Indicators Suggest Further Growth Opportunities
Important technical indicators reinforce confidence in Cardano’s positive outlook. The Relative Strength Index (RSI) is at 61.7, indicating strong upward momentum while remaining below the overbought levels.
Additionally, the Moving Average Convergence Divergence (MACD) displayed a bullish crossover, confirming an increase in buying pressure. These indicators, combined with breakout patterns, hint at a potential continuous rally for ADA in the days ahead.
If this momentum continues, breaking past the $1.20 mark might pave the way for a notable price surge.
Increasing Active ADA Addresses Indicate Network Growth
The rise in Cardano’s on-chain activity serves as another positive signal, with daily active addresses steadily climbing. On January 16, more than 46,000 active addresses were logged, showcasing intensified network engagement.
This consistent growth in user participation signifies a growing trust in Cardano’s ecosystem and its ability to provide long-term value.
Therefore, the expansion of the network could play a pivotal role in sustaining price levels during the ongoing uptrend.
Market Sentiment Points towards Positive Conviction
Is Cardano Set to Hit $1.40?
Cardano’s recent breakout, alongside favorable technical signals and increasing on-chain activity, suggests that the rally is gaining strong traction. The potential partnership with Ripple further bolsters its future outlook.
Hence, ADA seems to be in a promising position to reach $1.40, especially if it manages to surpass the $1.20 resistance level in the near future.