NAIROBI (CoinChapter.com)— Cardano’s native token, ADA, has faced volatile price movements recently, consolidating just below the $1 mark after rallying past $1.15 earlier. However, market dynamics suggest potential bullish momentum as network activity rises and whale accumulation continues.
Rising Network Activity Fuels Optimism
Cardano’s blockchain activity has surged, with daily active addresses reaching 50,828 this week, according to Santiment. This marked an increase in investor engagement and highlighted renewed interest in the blockchain at current price levels. Despite this, data from DeFiLlama indicated a decline in Total Value Locked (TVL) to $518 million, underscoring the need for stronger DeFi activity to support ADA’s long-term uptrend.
Cardano targets $1.50 after resistance break. Source: Ali MartinezAli Martinez, a crypto analyst, suggested that ADA could reach $1.50 if it breaks the $1.10 resistance level. Historical data aligns with this outlook, as ADA has previously recorded sharp surges after overcoming key resistance zones.
Meanwhile, Cardano founder Charles Hoskinson hinted at major developments for the blockchain, including Bitcoin integration into Cardano by May 2025, which could enhance its utility and adoption.
Whale Accumulation Signals Long-Term Confidence
Between Dec. 15, 2024, and Jan. 22, 2025, whales added 140 million ADA to their holdings, signaling confidence in the token’s prospects. Such accumulation often correlates with upward price trends, as large investors typically anticipate long-term growth.
ADA whales accumulate 140M tokens recently. Source: SantimentThe broader cryptocurrency market recovery, led by Bitcoin’s rally above $105,000, has also played a role in bolstering sentiment. However, ADA’s price struggles persisted, trading at $0.996 after a slight 2% gain over the past 24 hours. Trading volumes declined by 40% to $1.4 billion, reflecting weaker short-term market interest.
ADA Gearing Up for a Big Move? Key Levels to Watch
Cardano’s (ADA) daily chart shows a symmetrical triangle forming between $1.00 support and $1.09 resistance, signaling an impending breakout. Historically, similar patterns have led to sharp price moves, such as its 2021 rally where ADA surged over 200% after a similar consolidation phase.
ADA/USD 1-day price chart. Source: TradingViewThe $1.09 resistance aligns with the 0.618 Fibonacci retracement level, making it a crucial threshold for bulls. A breakout could push prices toward $1.39, the 1.618 Fib extension, or even $1.77, marking the 2.618 extension.
The Relative Strength Index (RSI) stands at 52.37, reflecting neutral conditions, while the Accumulation/Distribution (A/D) line at 12.13 billion indicates steady buying pressure.
ADA’s long/short ratio hits 0.91. CoinglassCoinglass data reveals ADA’s Long/Short Ratio at 0.91, signaling dominance by short traders. However, this setup could trigger a short squeeze, driving prices higher if resistance breaks.
Conclusion
Cardano’s path forward depends on overcoming resistance levels and sustaining network activity. The recent whale accumulation and technical indicators suggest potential for an extended rally. However, ADA needs increased trading volumes and stronger DeFi engagement to achieve a sustained upward trajectory.
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