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Cardano’s [ADA] price action is gaining attention as market sentiment shifts positively, supported by growing network metrics and bullish technical patterns.
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Key indicators suggest that ADA’s breakout potential is increasing, making it a focal point for traders and investors alike.
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“The bullish setup indicates that ADA is poised for significant upside if it can successfully breach critical resistance levels,” according to insights from COINOTAG.
Cardano [ADA] shows promising bullish signals supported by increasing network activity and a potential breakout above $1.10 resistance.
Is a breakout above the supply zone likely?
ADA’s daily chart displayed a promising view, with the token breaking out of a falling wedge pattern—a formation that frequently heralds upward price movements. Currently, ADA is testing a crucial supply zone between $1.08 and $1.10, which is likely to act as resistance in the near term.
The persistent formation of higher lows underlines a strengthening bullish trend. If ADA manages to break above $1.10, it could aim for a target around $1.30. However, failure to maintain this breakout could result in a consolidation phase around $1.00.
Consequently, traders should diligently monitor price movements in the coming days.
Source: TradingView
What rising network activity means
Cardano’s network activity is displaying revitalized interest from both investors and users. Over the last week, new addresses have surged by 4.79%, while active addresses saw an even more dramatic increase of 11.99%.
Moreover, the rise of zero-balance addresses by 12.26% highlights a growing engagement with the Cardano network. These increments suggest a broader adoption trend aligning with Cardano’s uplifting sentiment.
The rising participation signifies a robust foundation for price growth, enhancing the sustainability of ADA’s bullish momentum moving forward.
Source: IntoTheBlock
Understanding market positioning
The Long/Short Ratio highlights a slightly cautious market stance, with 53.45% of positions being short contrasted with 46.55% long. This disparity suggests that some traders may be cashing out profits or hedging against potential downturns.
Despite this, such positioning often results in short squeezes, where increasing buying pressure forces traders with short positions to cover, possibly enhancing ADA’s breakout potential.
Source: Coinglass
Cardano: Evaluating transaction value growth
The NVT (Network Value to Transaction) ratio for Cardano indicates a steady rise in transaction volume relative to its market capitalization. This uptrend suggests that ADA’s valuation increasingly reflects substantial network utility.
Furthermore, the uptick in transaction activity points to the continuous expansion of Cardano’s ecosystem, reinforcing its bullish narrative. Therefore, a rising NVT ratio acts as a positive indicator for long-term sustainability.
Source: Santiment
Read Cardano’s [ADA] Price Prediction 2023-24
Conclusion: ADA is well-positioned for a breakout
Cardano’s convergence of bullish technical patterns, increasing network activity, and improving market sentiment suggests strong upside potential ahead. If ADA manages to surpass the $1.10 resistance level, it is likely to maintain its positive trajectory. Will the token seize this momentum? All indicators point to a high probability of success.
