Cardano’s network activity reaches 2023 highs: ADA to $1.5 next?

• After crossing $1, ADA witnessed a 6% correction in the past 24 hours. 
• Rising active addresses and a few other metrics hinted at a bullish reversal. 

Cardano [ADA] has been witnessing a massive surge in network activity of late. This recent push has propelled the blockchain to a level that was last seen in 2023.

But will the surge in network activity be enough to end ADA’s consolidation phase after witnessing a slight pullback from the $1 mark? 

Cardano reaches a new high!

AMBCrypto reported earlier that ADA managed to touch $1 during the past week. However, since then, the bears somewhat took control and pushed it under that level.

In fact, ADA’s price fell by over 6% in the last 24 hours alone. After the price correction, 2.97 million ADA addresses remained in profit, which accounted for 67% of the total number of ADA addresses. 

Amidst all this market volatility, IntoTheBlock posted a tweet revealing a major update on Cardano.

As per the tweet, ADA’s network activity was surging. To be precise, the number of new user addresses hit its highest levels since June 2023.

A rise in the metric means that users or investors were showing more activity, which often results in price hikes.

Not only active addresses, but long-term holders were also showing confidence. This was evident from the stable graph of the number of addresses holding ADA for more than 1 year. 

Source: IntoTheBlock

Will this be enough for a breakout?

Though these aforementioned metrics looked optimistic and hinted at a price rise, AMBCrypto dug deeper to see whether these will be enough to push ADA to a new range between $1 and $1.5. At press time, the token was trading at $0.984.

The good news was that while the token’s price dropped, its trading volume also fell. This indicated that there were chances of a trend reversal.

However, its social volume also declined – signaling a drop in Cardano’s popularity. Moreover, the latest price correction also caused ADA’s MVRV ratio to drop. 

Source: Santiment

The MA cross technical indicator revealed that the bulls were still ahead of the bears. However, considering the current market condition, ADA might find support near its 9-day MA.

In case of a slip under that mark, investors might expect Cardano plummeting once again within the $0.6-$0.8 range. 

Realistic or not, here’s ADA’s market cap in BTC’s terms  

But if the rising network activity and dropping volume spark a bull rally, ADA might once again test its resistance at $1.

In case of a breakout above that, expecting ADA eye $1.5 next won’t be surprising. 

Source: TradingView