Cardano, a leading proof-of-stake cryptocurrency, has witnessed price surge, which is good news for the market. The broader crypto market recovery to earlier this year is drawing in this new wave of investment. Following a breakout of the crucial $1 supply, Cardano price seems to have the upside momentum in place. As momentum builds, the question remains: How much higher can Cardano climb in the evolving crypto landscape?
Cardano Price Hit $1, How High Can ADA go?
Cardano price recently surged to $1, forming a symmetrical triangle on the daily chart. This pattern indicates a potential bullish breakout in the coming days. ADA price trades close to the lower support zone and key support is found around $0.9168. The setup is a powerful buying setup for traders looking to take the upside.
The projected targets for a breakout for Cardano are at $1.4594, $1.7574 and $2.0387. These targets represent potential gains of 37.7%, 65.9%, and 92.5%, from where the level is today.
Why Will Cardano Rally?
Cardano price appears primed for a potential rally as key on-chain indicators show reduced selling pressure. The Network realized profit/loss chart highlights a profit-taking phase during the first week of December, which triggered selling at the local price peak.
However, this spike has since subsided, signaling that most short-term sellers have exited. This metric tracks whether coins moved on-chain are being sold at a profit or loss.
Source- Santiment
The 30-day MVRV Ratio reflects a similar trend. MVRV measures the average profit or loss of recently moved tokens within the last 30 days. The chart shows that MVRV slid below the neutral line, indicating that holders are no longer in significant profit. Such dips often reduce selling pressure and create opportunities for price rebounds.
Source. Santiment
If this trend continues, the top altcoin could gain upward momentum as traders capitalize on the easing market dynamics. All eyes remain on ADA’s price movements for confirmation of a breakout. With the surge in crypto market like BTC hovering above $105k and ETH trading around $3,900 fueling the optimism. The price of ADA is trading at $1.05, as of Monday, DEC 16th, following a notable 40% surge over the past month.
The MACD indicator shows a potential reversal. The MACD line has crossed below the signal line, indicating short-term bearish sentiment. The Chaikin Money Flow (CMF) is currently positive at 0.17, signaling strong inflows of capital into ADA.
Cardano Price Chart: TradingView
If the bullish momentum continues, Cardano’s price could aim for the $2.00 resistance level, potentially targeting its ATH near $3.10. However, if bearish sentiment takes control, the asset may experience a sharp correction below $1.00.
Cardano’s recent surge past $1 indicates it still has room to run. In the long term, momentum should propel ADA towards $2.04. Market sentiment and resistance levels will guide the future movements, however.
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