- After crossing the $1 mark, ADA has witnessed a 6% correction in the last 24 hours.
- Rising active addresses and several other indicators hinted at a bullish reversal.
Cardano (ADA) We’ve been seeing a huge surge in network activity recently. This recent push has advanced blockchain to levels last seen in 2023.
But will the surge in network activity be enough to end ADA’s consolidation phase after witnessing a slight pullback near the $1 level?
Cardano hits new highs!
AMBCrypto reported Previously, ADA reached $1 during the past week. But then the bears gained some control and pushed back below that level.
In fact, the price of ADA has fallen by more than 6% in the last 24 hours alone. There are 2.97 million ADA addresses that remain profitable even after price adjustment, which is 67% of all ADA addresses.
Amid this market volatility, IntoTheBlock tweet We are releasing a major update to Cardano.
According to the tweet, ADA’s network activity was surging. To be precise, the number of new user addresses reached its highest level since June 2023.
A rising indicator means there is more activity from users or investors, which often leads to higher prices.
Not only active addresses but also long-term holders were showing confidence. This can be seen by the stable graph of the number of addresses that have held ADA for more than one year.
Source: IntoTheBlock
Will this be enough for a breakout?
While these aforementioned indicators looked optimistic and hinted at a price rise, AMBCrypto looked deeper to see if this was enough to push ADA into a new range between $1 and $1.50. At press time, the token was trading at $0.984.
The good news is that while the token price has fallen, trading volume has also fallen. This indicates a possible trend reversal.
However, social volume has also decreased, indicating a decline in Cardano’s popularity. Additionally, ADA’s MVRV ratio has also fallen due to recent price adjustments.
Source: Santiment
The MA Cross technical indicator showed that the bulls are still ahead of the bears. However, given the current market conditions, ADA may find support near the 9-day MA.
In the event of a decline below this level, investors can expect Cardano to plummet once again within the $0.6-$0.8 range.
Realistic or not, the following is Market capitalization of ADA based on BTC
However, if increasing network activity and decreasing trading volumes trigger a bull market, ADA could once again test resistance at $1.
If a breakout above that occurs, it would not be surprising to see ADA eyeing $1.5 next.
Source: TradingView