Cardano Price Outlook: This Level Is Key For A 76% Rally

Cardano’s (ADA)price has seen gains in recently, as data reveals increasing trading volume and open interest.

To be precise, long positions rose by 68%, while the total open interest increased by 2.3% to $763.93 Million.

Despite this short-term weakness, ADA demonstrates superior performance over BTC and ETH by delivering 102.82% gains in 180 days.

Cardano Price Action on the Daily Chart

At press time, Cardano price was trading at $0.7328, reflecting a 2.61% increse in a day.

The price action on the daily chart is testing the $0.6590 support area, which served as a previous point of buying interest-driven price reversal.

Meanwhile, the MACD indicator shows bearish signals as the MACD line remains below the signal line, which indicates declining momentum.

However, the Accumulation/Distribution (A/D) metric shows a value of 2.05 billion, which suggests that institutional investors continue to purchase ADA tokens during this period of market instability.

ADA may experience a 76.91% price increase to reach $1.21 if market buying pressure intensifies and pushes through the previous resistance levels.

Failure of support levels would trigger additional price declines for the token.

ADA Growth Despite Previous Indication Of Weakness

Bearish trend was prominent on the 4-hour timeframe. a day prior. The price action showed declining highs and declining lows, which validated the continuous selling force.

The Alligator indicator showed the Cardano price below its moving averages as the price continued its downward movement.

However, the Money Flow Index indicated the token was nearing over sold territory.

Moreover, ADA was able to surpass the essential support threshold at $0.5550. ADA’s price decline below $0.5550 would trigger a 19.99% fall and potentially establish a new multi-month low point.

However, a short-term price recovery towards $0.70–$0.75 has occurred as bulls decided to enter the market.

Cardano’s Strength Against Bitcoin and Ethereum

Moreover, despite the bearish short-term setup, Cardano was a top-performing cryptocurrency during the previous 180 days, as its value has surpassed Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB).

ADA price has increased by 102.82% since January, according to TapTools, while Bitcoin gained 39.98% and Binance Coin rose 10.53%, but Ethereum experienced a -19.80% drop.

Furthermore, the market’s positive reaction toward Cardano demonstrates investors’ belief in the project’s ecosystem development and its advancing growth.

The Cardano Treasury stands as a major growth driver because it now holds more than 1.7 billion ADA, which translates to $1.22 Billion.

The ecosystem projects funded by the Cardano treasury ensure extended financial support to sustain the network.

Cardano’s Expanding Interoperability

Moreover, the Cardano’s growing ability to connect different chains has positively influenced its market performance.

Wanchain data shows that Cardano stands as one of the most interconnected blockchains since it enables seamless connections between Bitcoin, Ethereum, Solana, Avalanche, BNB Chain and Polygon networks.

The token benefits from extensive interoperability because it enables seamless asset transfers between various blockchains.

The appeal of Cardano increases when decentralized applications (dApps) start using cross-chain solutions because of its ability to connect to various networks.

Long-term adoption and utility of the token will grow through increased network integrations, which will strengthen its core value while price fluctuates in the short term.