- 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
Credit: Source link
