Cardano (ADA) is expected to break through the long-standing resistance level at $1, following a historical trend. This breakthrough will likely occur once ADA remains within the price range of $0.45 and $0.50.
The growth of Cardano’s ecosystem has been remarkable, with the total number of transactions reaching a staggering 83.6 million on March 21, 2024. This growth demonstrates the strength and resilience of Cardano in the face of ongoing market trends. However, the native token ADA has experienced unexpected volatility in recent weeks, driven by geopolitical tension and the upcoming Bitcoin halving. As a result, the price of ADA has fallen significantly from its all-time high of $3.
Currently, ADA is trading at $0.44, with a negative year-to-date return of 29% and a seven-day decline of 25%. However, despite this price decline, the trading volume for ADA has surged by 8% in the past 24 hours, reaching $509 million.
A renowned analyst, Trend Rider, has provided a technical analysis of ADA. According to him, there could be a significant market showdown that mirrors the performance of October 2020. During that time, ADA experienced a considerable drop to $0.10 before experiencing a bull run that pushed the price to $3.
Trend Rider believes that ADA is currently in a “sweet spot for longs” between $0.45 and $0.50, which is crucial for sustaining an upward trend. Historical data also shows that the Relative Strength Index (RSI) crossovers accurately indicate the start of bull and bear markets for ADA. Based on the current price behavior, the RSI is interacting with its moving average, which suggests a significant price move may be on the horizon.
If ADA holds its current zone, it could stage an explosive run to break the $1 resistance level. However, if the asset falls below the $0.45 and $0.50 range, it could potentially drop to $0.25. Despite this volatility, Trend Rider believes that the underlying support levels for ADA are stronger than ever and could set the stage for a potential bullish breakout.
Cardano’s ecosystem has been thriving, as evidenced by a 166% Quarter-over-Quarter (QoQ) surge in Cardano’s Total Value Locked (TVL) according to a 2023 Messari report. Its Year-over-Year increase is also around 693%. Additionally, the number of smart contracts on Cardano has increased by 67% in just three weeks in March 2024, adding 9,671 new contracts. This rapid growth and adoption of Cardano’s smart contract platform have solidified its position as the blockchain with the highest development activity, surpassing other major crypto projects.
In conclusion, Cardano is poised for potential growth and a breakthrough in its price. The ecosystem is thriving, with impressive numbers in terms of transactions and smart contracts. Cardano’s future looks promising, and investors are eagerly watching for the asset to fulfill its potential.
