Cardano
Here’s what Cardano needs for a move above $1
Cardano’s price gained bullish momentum as it surged by 3%, but a metric suggested that it was overvalued.
- ADA’s MVRV ratio improved in the last few days.
- Most technical indicators looked bullish.
As the market turned bullish, Cardano [ADA] also managed to lift its price in the last few hours. While ADA pushed its value up, it was also about to breakout from a bullish pattern. If Cardano successfully breaks above, then investors might witness ADA touch $1 soon.
Cardano surges by 3%
According to CoinMarketCap, after a week of price drops, ADA’s price surged by 3% in the last 24 hours. At the time of writing, it was trading at $0.608 with a market capitalization of over $21.6 billion. The chances of ADA pumping further also seem high.
World of Charts, a popular crypto analyst, recently posted a tweet highlighting how Cardano was about to break above a falling wedge pattern. As per the tweet, if ADA successfully breaks above the level, then its price can touch $1 in the coming days.
To better understand whether touching $1 is a viable option, we must first determine if ADA could sustain its uptrend.
An analysis of Santiment’s data revealed that ADA’s MVRV ratio improved in the last few days as its price increased. Its open interest also went up, indicating that the chances of Cardano’s price remaining bullish were high.
However, the NVT ratio was troublesome as it registered a sharp uptick. This suggested that ADA was overvalued, which might put an end to its uptrend.
Source: Santiment
ADA’s network activity, on the other hand, remained pretty high until the 6th of April. The blockchain’s daily active addresses were up. Its velocity was also relatively high, signaling that ADA was used more often in transactions within a set time frame.
Source: Santiment
ADA is ready for a bigger pump
To double-check the possibility of a price uptick, AMBCrypto analyzed its daily chart. We found that both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered upticks.
Its MACD also displayed the possibility of a bullish crossover, further indicating that ADA’s price might soon touch $1. However, the Money Flow Index (MFI) remained bearish as it went down in the last few days.
Source: TradingView
Read Cardano’s [ADA] Price Prediction 2024-25
We then took a look at Hyblock Capital’s data to find whether there are any roadblocks before $12 for ADA. We found that Cardano would witness high liquidation near $0.62 and $0.68.
In order for ADA to reach $1, it’s important for the token to go above the aforementioned band without falling victim to a major price correction.
Source: Hyblock Capital
