- Despite the latest price increase, only 31% of ADA addresses were profitable.
- Some figures pointed to a price correction in the coming days.
When the market turned bullish, Cardano [ADA] was not discounted as it posted promising gains. But there was more to the story. The token broke just above a crucial resistance, suggesting that ADA could move towards $1 next.
Cardano’s latest breakout
ADA bulls have increased the price of the token by more than 6% in the last 24 hours alone. At the time of writing this was the case trade for $0.3864.
Thanks to the price increase, more than 1.4 million ADA addresses now made a profit, accounting for more than 31% of the total number of Cardano addresses.
Source: IntoTheBlock
The good news was that even more addresses would be able to enjoy the profit in the coming days. World Of Charts, a popular crypto analyst, posted a tweet which showed Cardano breaking above a bullish falling wedge pattern.
The pattern first appeared in December 2023 and since then the price of ADA has been consolidating into it. The tweet also mentioned that this recent breakout could see ADA move towards $1.
Source:
ADA’s goals before $1
AMBCrypto then checked Cardano’s on-chain data to see how its metrics were affected by the latest price increase.
According to our analysis of Santiment’s data, ADA’s trading volume has increased significantly along with its price. Generally, an increase in volume along with price acts as the basis for a bull rally.
Source: Santiment
The MVRV ratio increased, which can be inferred as a bullish signal. Additionally, ADA whale activity also remained high over the past week.
However, a look at Coinglass’ data revealed a bearish signal. Cardano’s long/short ratio has fallen over the past 24 hours. This meant that there were more short positions in the market than long positions, which was worrying.
Source: Coinglass
Therefore, we next reviewed the token’s daily chart. According to our analysis, Cardano was approaching resistance again. The technical indicator MACD showed a bullish advantage, indicating a successful break above that level.
If that happens, investors can expect the ADA to move towards $0.45 first. That will be a crucial level to jump over before the token begins its journey to $1 in the coming weeks or months.
Read Cardanos [ADA] Price prediction 2023-24
However, if the bull rally ends soon, it won’t be surprising to see the token drop again to $0.3.
In fact, the Relative Strength Index (RSI) registered a downward trend after a sharp peak, indicating a possible price correction in the coming days.
Source: TradingView