Cardano Reclaims $1 As Network Growth Surges – Larger Breakout Ahead?
Cardano (ADA) surged past the $1 mark over the weekend, marking a major milestone in its recent rally. However, after reaching multi-year highs of $1.15, the cryptocurrency is currently correcting 17% as profit-taking begins. Despite the pullback, the long-term outlook for Cardano remains bullish for three weeks, driven by fresh market momentum in the past three weeks.
Price action reflects market maturityADA consolidates its gains and lays the foundation for its next steps. On-chain data from IntoTheBlock highlights strong growth in network activity, indicating increasing interest and adoption. This increase in activity suggests that the consolidation phase may be temporary as the broader market strengthens.
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Cardano’s ability to maintain key support levels during this correction will be crucial in determining its next direction. Analysts are optimistic that the network’s growing fundamentals and a favorable macro environment will propel ADA to new heights.
As traders and investors keep an eye on the $1 support level, Cardano’s changing network indicators and bullish sentiment hint that a breakout could happen soon. Whether ADA’s price action will take advantage of these factors remains a key question for market participants.
Cardano daily active addresses continue to grow
Cardano’s network activity is showing signs of strong growth, with a significant increase in daily active addresses. IntoTheBlock’s on-chain data display The number of new user addresses has reached its highest level since June 2023. The surge in network activity signals increasing adoption and growing interest in the Cardano ecosystem, which is critical to its long-term growth.
Over the weekend, Cardano returned to $1 levels, marking an important psychological milestone. While prices are currently consolidating, this move comes against the backdrop of a surge in network growth, suggesting market participants remain optimistic about ADA’s future. IntoTheBlock’s analysis of X suggests that Cardano may be preparing for a bullish breakout, with the possibility of a rise to new price levels as the current consolidation phase stabilizes.
Despite the recent pullback from multi-year highs of $1.15, Cardano remains well-positioned for further growth. ADA is still over 230% away from its all-time high (ATH) of approximately $3.1, indicating that there is significant room for upside as the network matures and attracts more users.
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If the price maintains support above $1 and network growth continues to trend upward, Cardano may be primed for the next bullish move. With the number of daily active addresses continuing to increase and the huge gap between its ATH, the potential for a strong rebound remains. Investors are closely watching whether Cardano can sustain this momentum and capitalize on surging network activity in the coming months.
ADA demand remains strong
Cardano is trading at $0.93, up 250% since November 5, reaching a yearly high of $1.15. The price has retraced over 17% since Saturday morning’s peak and is currently trying to find strong demand above the $0.90 level. This pullback is part of the natural consolidation process after a sharp move higher, and ADA must remain above $0.90 to maintain bullish momentum.
If ADA manages to hold above this level, it could set the stage for a potential breakout with the next key supply level above $1.25. Such a move suggests that the current pullback is just a healthy correction before another rally.
However, if ADA falls below the $0.90 level and fails to regain support, a deeper correction could occur, potentially allowing ADA to test lower levels. In this case, the next key support area is likely to be near the $0.80 mark, where ADA may find further demand.
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Overall, the price action for ADA remains bullish in the long term, but support above the $0.90 mark will be needed to continue its upward trajectory and reach new supply levels above $1.25.
Featured image from Dall-E, chart from TradingView
