- Cardano’s breakout and uptrends target $1.40, with resistance at $1.20 crucial.
- Market sentiment and rising active addresses reinforce the bullish momentum and sustained growth of $ADA.
Cardano (ADA) recently broke a bull flag pattern on the daily timeframe, signaling the potential for further gains. At press time, ADA was trading at $1.12, reflecting an impressive 7.11% increase over the past 24 hours.
The chart shows additional bullish patterns, such as a cup and handle and an inverse head-and-shoulders formation. These trends further support the possibility of an extended rally.
If ADA manages to break above the $1.20 resistance level, it could target $1.40, a key psychological milestone.
Source: TradingView
Is Ripple’s stablecoin partnership driving ADA’s momentum?
The announcement of a potential stablecoin Ripple RLUSD partnership with Cardano has sparked optimism among investors.
Charles Hoskinson, founder of Cardano, highlighted the importance of stablecoins in the ecosystem, referring to ongoing discussions on the integration of RLUSD.
XRP’s recent rally in the market could fuel this sentiment, indirectly supporting Cardano’s price action. Additionally, this partnership, if confirmed, could significantly improve Cardano’s DeFi capabilities and generate even more interest from developers and users.
Technical Indicators Suggest Further Upside Potential
Key technical indicators are building confidence in Cardano’s bullish outlook. The RSI stands at 61.7, showing strong bullish momentum while remaining below overbought levels.
Additionally, the MACD showed a bullish crossover, confirming increasing buying pressure. These indicators align with breakout patterns, suggesting that ADA’s rally may persist in the coming days.
If the momentum continues, breaking above $1.20 could pave the way for a significant price rise.
Source: TradingView
ADA’s Increase in Active Addresses Highlights Network Growth
Cardano’s on-chain activity is another bullish signal, as daily active addresses have been steadily increasing. As of January 16, more than 46,000 active addresses were recorded, reflecting increased network usage.
This steady increase in participation demonstrates growing confidence in the Cardano ecosystem and its potential to generate long-term value.
Therefore, network growth could be a crucial driver of price sustainability in the ongoing recovery.
Source: Santiment
Market Sentiment Indicates Bullish Conviction
Source: Coinglass
Read Cardano (ADA) Price Prediction 2023-24
Will Cardano reach $1.40?
Cardano’s breakout, coupled with bullish technical indicators and increasing on-chain activity, suggests the rally has strong momentum. Additionally, the potential partnership with Ripple adds even more credibility to its long-term prospects.
Therefore, $ADA looks well-positioned to reach $1.40, provided it breaks through the $1.20 resistance in the coming days.
