- Despite the latest price hike, only 31% of ADA addresses were profitable.
- Some indicators suggest a price correction in the coming days.
As the market turned bullish, Cardano (ADA) ADA hasn’t been left behind as it has seen promising gains. But there’s more to the story. The token has just broken through a crucial resistance, suggesting that ADA could head towards $1 next.
Cardano’s Latest Breakthrough
ADA bulls have pushed the token’s price up more than 6% in the last 24 hours alone. At press time, it was trade at $0.3864.
Thanks to the price increase, over 1.4 million ADA addresses are now in profit, representing over 31% of the total number of Cardano addresses.
Source: IntoTheBlock
The good news is that more addresses could see profits in the coming days. World Of Charts, a popular crypto analyst, published a tweet revealing that Cardano has broken out of a bullish falling wedge pattern.
The pattern first appeared in December 2023, and since then, ADA price has been consolidating within it. The tweet also mentioned that this recent breakout could now allow ADA to move closer to $1.
Source: X
ADA’s Goals Before $1
AMBCrypto then checked Cardano’s on-chain data to see how metrics have been affected due to the latest price surge.
According to our analysis of Santiment data, ADA’s trading volume has increased significantly alongside its price. Typically, an increase in volume coupled with price serves as a basis for a move higher.
Source: Santiment
Its MVRV ratio has increased, which can be interpreted as a bullish signal. Additionally, ADA whale activity has also remained high throughout the past week.
However, a look at Coinglass data revealed a bearish signal. Cardano’s long/short ratio decreased over the last 24 hours. This meant that there were more short positions in the market than long positions, which was concerning.
Source: Coinglass
So, we then assessed the token’s daily chart. According to our analysis, Cardano was approaching a resistance again. The MACD technical indicator showed a bullish advantage, indicating a successful break above this mark.
If this happens, investors could expect ADA to head towards $0.45 first. This will be a crucial level to break before the token begins its journey towards $1 in the coming weeks or months.
Read Cardano (ADA) Price Prediction 2023-24
However, if the bullish rally ends soon, it won’t be surprising to see the token fall back to $0.3.
In fact, the Relative Strength Index (RSI) has registered a decline after a sharp rise, indicating a possible price correction in the coming days.
Source: TradingView
