Cardano rises above key price level – Is $1 the next target?

• Despite the latest price rise, only 31% of ADA addresses were in profit. 
• A few metrics hinted at a price correction in the coming days. 

As the market turned bullish, Cardano [ADA] was not left out as it registered promising gains. But there was more to the story. The token just broke above a crucial resistance, which suggested that ADA could next move towards $1. 

Cardano’s latest breakout

ADA bulls pushed the token’s price up by more than 6% in the last 24 hours alone. At press time, it was trading at $0.3864.

Thanks to the price increase, now over 1.4 million ADA addresses were in profit, which accounted for more than 31% of the total number of Cardano addresses.

Source: IntoTheBlock

The good news was that even more addresses might enjoy profits in the coming days. World Of Charts, a popular crypto analyst posted a tweet revealing that Cardano broke above a bullish falling wedge pattern.

The pattern first appeared in December 2023, and since then ADA’s price has been consolidating inside it. The tweet also mentioned that this recent breakout could now allow ADA to move towards $1. 

Source: X

ADA’s targets before $1

AMBCrypto then checked Cardano’s on-chain data to see how metrics were affected due to the latest price rise.

As per our analysis of Santiment’s data, ADA’s trading volume increased substantially along with its price. Generally, a rise in volume along with price acts as a foundation for a bull rally.

Source: Santiment

Its MVRV ratio increased, which can be inferred as a bullish signal. Additionally, ADA’s whale activity also remained high throughout the last week.

However, a look at Coinglass’ data revealed a bearish signal. Cardano’s long/short ratio declined in the last 24 hours. This meant that there were more short positions in the market than long positions, which was concerning.

Source: Coinglass

Therefore, we then assessed the token’s daily chart. As per our analysis, Cardano was once again approaching a resistance. The technical indicator MACD displayed a bullish advantage, indicating a successful breakout above that mark.

If that happens, then investors might expect ADA to first move towards $0.45. That will be a crucial level to jump above before the token begins its journey towards $1 in the coming weeks or months. 

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

However, if the bull rally ends soon, then it won’t be surprising to see the token once again dropping to $0.3.

In fact, the Relative Strength Index (RSI) registered a downtick after a sharp spike, which indicated a possible price correction in the coming days. 

Source: TradingView