Cardano’s [ADA] price action is marked by improving market sentiment, supported by rising network metrics and positive technical patterns.
Key indicators suggest that ADA’s breakout potential is increasing, making it a key focus for investors and traders.
“The uptrend suggests that ADA could offer major upside potential if it breaks through critical resistance levels.”
Cardano [ADA] is showing strong bullish signals, supported by increasing network activity and a potential break above the $1.10 level.
Is a Break in the Supply Zone Expected?
The daily chart of ADA offers a promising outlook by breaking out of a descending triangle pattern; such patterns often signal that the price is about to move higher. Currently, ADA is testing a critical supply zone between $1.08 and $1.10, which is likely to act as resistance in the short term.
Continuous formation of higher lows indicates a strengthening uptrend. If ADA breaks above $1.10, the next target could be $1.30. However, if this breakout fails, ADA could consolidate at $1.00.
Therefore, it can be said that traders should watch the price movements carefully. Cardano’s network activity is seeing increasing interest from investors and users. While a 4.79% increase in new addresses was observed last week, a much more significant increase of 11.99% was recorded in active addresses.
Additionally, a 12.26% increase in zero-balance addresses indicates increased engagement on the Cardano network, indicating a broader adoption trend that aligns with Cardano’s positive market sentiment.
The increasing participation is creating a solid foundation that increases the sustainability of ADA’s bullish momentum. The Long/Short Ratio shows that the market is taking a cautious stance, with 53.45% short and 46.55% long. This difference suggests that some traders are looking to take profits or hedge against possible declines.
However, this type of positioning often leads to short squeezes, where the increased buying pressure forces short traders to close their positions, which could increase ADA’s potential for a breakout.
Cardano’s NVT (Network Value to Transactions) ratio shows that its transaction volume relative to its market cap has been steadily increasing. This upward trend suggests that ADA’s valuation reflects an increasingly significant network benefit.
Moreover, the increase in transaction activity reinforces the bullish scenario by showing that the Cardano ecosystem is continuously expanding. The increasing NVT ratio can be considered a positive indicator for long-term sustainability.
