Cardano (ADA) is showing strong potential for a 30% rally, supported by impressive on-chain metrics and growing market activity. Weekly active addresses for ADA have surged past 350,000 for the first time since June 2023, reflecting increased network usage and whale accumulation. This rise comes alongside heightened purchasing pressure in the spot market, pushing futures open interest to $725.83 million — a three-year high.
On the profitability side, ADA’s Market Value to Realized Value (MVRV) ratio has climbed above 75%, a level last seen during the 2021 bull market. While this indicates significant returns for investors, most appear to be holding their positions rather than selling off, limiting downward pressure on the price. In fact, over the past two days, ADA holders collectively gained nearly $200 million, with many opting to wait for further growth.
ADA recently broke through a crucial resistance at $0.908, reaching $0.98 after a 24% surge. This breakthrough sets the stage for further upward momentum, with a target of $1.26 in sight. The rally has also triggered $12 million in liquidations, primarily from short positions, underscoring bullish sentiment in the market. However, with such high profits, gradual sell-offs could emerge, potentially tempering the rally.
Overall, ADA’s strong fundamentals, network growth, and on-chain metrics suggest it’s well-positioned for further gains, with a possible climb to $1.26 as long as current momentum holds.