Cardano price is currently surging as it seeks to reclaim 11th place ahead of Justin Sun’s Tron Network (TRON), which Sun believes can reach $4 billion in revenue with his new strategy. ADA bulls have returned in full force, driving the price up 8.1% in the last 24 hours to $0.3719. On-chain analysis shows a rise in active addresses on the network, a typical precursor to a price increase. Additionally, trader sentiment has turned bullish, with more investors rushing to purchase the asset. Cardano now faces a critical resistance zone, and its next upward move will depend on how it performs at this key milestone.
Spike in Active Addresses Reflect Cardano Price Surge
Data from Santiment shows an increase in active addresses since it hit a yearly low on August 18, 2024. This date also aligns with the end of the RareEvo blockchain event, where Cardano unveiled its Hydra Layer 2 scaling solution, proving it to be a real contender among highly scalable networks.
This spike in the number of active addresses could signal new users coming in to test the network or new investors jumping in to take advantage of the hype around Hydra and the upcoming Chang hard fork upgrade.
This observation is further proven by IntoTheBlock Large Holder Netflow data, which shows that Cardano whales have been adding to their bags since August 18.
Traders are taking advantage of the hype around Cardano to make money. Coinglass Liquidation data shows over $10 million worth of cumulative Short Liquidity Leverage between $0.319 and $0.367. In contrast, there are only $3.47 million worth of Longs, and they are dwindling fast.
This imbalance indicates that traders are optimistic about Cardano price surging higher in the coming days and, hence, are willing to bet their money on that assessment.
The largest portion of the $10 million liquidity is situated around $0.343, which means this is the best immediate support level for Cardano should market conditions change.
All Ahead Flank for ADA Price After $0.3750
Cardano price defied a classic bearish continuation pattern and broke out to the upside, which suggests the beginning of an uptrend. This strong market performance suggests that ADA price is looking to regain its all-time highs.
The breakout is accompanied by a strong bullish candlestick, a positive signal for continued upward movement. The size of the candlestick indicates strong buying pressure.
ADA is likely to find resistance at $0.3703, where the price is currently testing, and above that, $0.4340, aligned with the upper Bollinger Band and a previous consolidation area.
Additionally, the price of Cardano is currently pushing toward the upper Bollinger Band, indicating that the asset might be entering an overbought condition and that there is strong momentum. A positive Chaikin Money Flow (CMF) value supports this, indicating money inflow into ADA.
Holding or accumulating ADA may work if the bullish trend continues and breaks through the $0.4340 resistance. If the price remains above the $0.3430 level, traders should expect a longer-term target around $0.5000.
However, if the Cardano price fails to breach and maintain above $0.3750, it may show market weakness and could cause it to drop to 0.3067, invalidating the current bullish thesis.
Frequently Asked Questions (FAQs)
Cardano price surge is driven by rising network activity, bullish trader sentiment, and anticipation of the Hydra Layer 2 solution and the upcoming Chang hard fork.
Cardano is currently facing resistance around $0.3703. A successful breakout above this level could lead to a rally toward $0.4340, with further potential to reach $0.45 or even higher if momentum continues.
If the bullish trend continues and Cardano breaks through the $0.4340 resistance, holding or accumulating ADA could be a profitable strategy. However, it’s important to monitor the price action closely, especially around key resistance levels.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/cardano-price-can-rally-to-0-45-if-this-key-resistance-yields/
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