- After crossing $1, ADA witnessed a 6% correction in the last 24 hours.
- Rising active addresses and a few other metrics pointed to a bullish reversal.
Cardano [ADA] has witnessed a massive increase in networking activity lately. This recent push has taken blockchain to levels last seen in 2023.
But will the increase in network activity be enough to end ADA’s consolidation phase after witnessing a slight pullback from the $1 mark?
Cardano reaches a new high!
AMBCrypto reported rather that ADA managed to reach $1 this past week. However, since then the bears took some control and pushed it below that level.
In the last 24 hours alone, the price of ADA has fallen by more than 6%. After the price correction, 2.97 million ADA addresses remained in profit, accounting for 67% of the total number of ADA addresses.
Amid all this market volatility, IntoTheBlock recorded a tweet revealing a major update about Cardano.
According to the tweet, ADA’s network activity increased. To be precise, the number of new user addresses reached the highest level since June 2023.
An increase in the metric means that users or investors showed more activity, often resulting in price increases.
Not only active addresses, but also long-term holders showed confidence. This was evident from the stable graph of the number of addresses with ADA for more than 1 year.
Source: IntoTheBlock
Will this be enough for an outbreak?
While these aforementioned numbers looked optimistic and hinted at a price increase, AMBCrypto dug deeper to see if they will be enough to push the ADA to a new range between $1 and $1.5. At the time of writing, the token was trading at $0.984.
The good news was that as the price of the token fell, trading volume also fell. This indicated that there were chances of a trend reversal.
However, social volume also decreased, indicating a decline in Cardano’s popularity. Moreover, the latest price correction also caused ADA’s MVRV ratio to decline.
Source: Santiment
The MA cross technical indicator showed that the bulls were still ahead of the bears. However, given current market conditions, ADA could find support around the nine-day MA.
In the event of a decline below that mark, investors could expect Cardano to fall again within the $0.6-$0.8 range.
Realistic or not, here it is The market capitalization of ADA in terms of BTC
But if rising network activity and falling volume trigger a bull rally, ADA could retest its resistance at $1.
In the event of a breakout above that, it won’t be surprising to expect ADA-eye to hit $1.5 next.
Source: TradingView