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In a promising turn of events, Cardano’s ADA has ignited a bullish trend at the onset of the new week, shaking off last week’s brief respite after a formidable 50.62% surge. ADA enthusiasts have reason to celebrate once more as the token flaunts a 3.8% gain, currently valued at $0.6.
Despite the recent bullish momentum, skeptics who have criticized Cardano over the past two years are left questioning the sustainability of this resurgence. However, diving into on-chain data reveals a compelling narrative that could propel ADA to new heights.
Analyzing liquidity accumulations, a crucial factor in determining price movements, data from IntoTheBlock underscores that major liquidity accumulations for ADA remain positioned below the current market levels.
Should Cardano aspire to breach its near-term target of $0.7 per ADA, it would only need to absorb 1.42 billion ADA—tokens purchased between $0.6 and $0.7, currently causing losses to holders.
The key lies in understanding the dynamics of token growth and the potential impact of loss-making tokens at specific price levels. Cardano faces a critical juncture, with $855 million worth of ADA on the path to $0.7, constituting a formidable 4% of the token’s market capitalization.
On the other hand, this volume is dispersed between $0.6 and $0.7, mitigating the risk of concentration at a single critical point.
If Cardano successfully absorbs this volume amid favorable market conditions supporting growth, a tantalizing 15% increase above current values becomes a plausible scenario. However, a cautionary note emerges on the downside, as profit-seeking investors may decide to capitalize on gains, exerting downward pressure on the ADA price.
Source: https://u.today/cardano-ada-price-aims-for-epic-15-upside-but-theres-barrier-to-overcome