Cardano price prediction: Will bullish sentiment translate to a breakout?

• ADA breaks out of a bullish falling wedge, testing the critical $1.10 resistance zone.
• Market sentiment aligned with rising network activity, increasing ADA’s potential for sustained growth.

Cardano [ADA] is gaining momentum as both crowd sentiment and smart money metrics signal a bullish outlook for the token. With consistent increases in network activity, Cardano is regaining investor attention. 

At press time, ADA was trading at $1.08, reflecting a minor 0.51% decrease in the last 24 hours.

However, with technical and fundamental indicators aligning positively, the question remains—will this sentiment translate into a breakout above key resistance levels?

Is a breakout above the supply zone likely?

ADA’s daily chart painted a promising picture, with the token breaking out of a falling wedge pattern.

This bullish formation often precedes upward price movements, and ADA is now testing a critical supply zone between $1.08 and $1.10. However, this zone is likely to act as resistance in the short term. 

Additionally, the consistent formation of higher lows supports a strengthening bullish trend. If ADA breaks above $1.10, it could target $1.30, but failure to hold this level may lead to consolidation around $1.00.

Therefore, traders should monitor price action closely in the coming days.

Source: TradingView

What rising network activity means

Cardano’s network activity is reflecting renewed interest from investors and users alike. Over the past week, new addresses have increased by 4.79%, and active addresses saw an even more significant surge of 11.99%.

Furthermore, zero-balance addresses rose by 12.26%, highlighting growing engagement with the network. 

These increases suggest a broader adoption trend that aligns with Cardano’s improving sentiment.

Additionally, rising participation across the network provides a solid foundation for price growth, making ADA’s bullish momentum more sustainable in the long run.

Source: IntoTheBlock

Understanding market positioning

The Long/Short Ratio revealed a slightly cautious market, with 53.45% of positions being short and 46.55% long. This imbalance indicated that some traders are taking profits or hedging against potential downside risks. 

However, such positioning can often lead to short squeezes, where increasing buying pressure forces shorts to cover their positions. Therefore, a sudden surge in demand could amplify ADA’s bullish breakout potential. 

Source: Coinglass

Cardano: Evaluating transaction value growth

The NVT (Network Value to Transaction) ratio for Cardano highlighted a steady rise in transaction volume compared to its market cap. This increase indicates that ADA’s valuation is supported by robust network utility. 

Furthermore, growing transaction activity suggests that Cardano’s ecosystem continues to expand, which reinforces its bullish narrative. Therefore, the rising NVT ratio is a positive indicator for long-term sustainability.

Source: Santiment

Read Cardano’s [ADA] Price Prediction 2023-24

Conclusion: ADA is well-positioned for a breakout

Cardano’s combination of bullish technical patterns, increasing network activity, and improving sentiment points to strong upside potential.

Therefore, if ADA can break above the $1.10 resistance level, it is likely to sustain its bullish trajectory. Will the token capitalize on this momentum? All indicators suggest that it is highly possible.