Cardano’s network activity reaches 2023 highs: ADA to $1.5 next?

• After crossing $1, ADA witnessed a 6% correction in the past 24 hours. 
• Rising active addresses and a few other metrics hinted at a bullish reversal. 

Cardano [ADA] has been witnessing a massive surge in network activity of late. This recent push has propelled the blockchain to a level that was last seen in 2023.

But will the surge 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 earlier that ADA managed to touch $1 during the past week. However, since then, the bears somewhat took control and pushed it under that level.

In fact, ADA’s price fell by over 6% in the last 24 hours alone. After the price correction, 2.97 million ADA addresses remained in profit, which accounted for 67% of the total number of ADA addresses. 

Amidst all this market volatility, IntoTheBlock posted a tweet revealing a major update on Cardano.

As per the tweet, ADA’s network activity was surging. To be precise, the number of new user addresses hit its highest levels since June 2023.

A rise in the metric means that users or investors were showing more activity, which often results in price hikes.

Not only active addresses, but long-term holders were also showing confidence. This was evident from the stable graph of the number of addresses holding ADA for more than 1 year. 

Will this be enough for a breakout?

Though these aforementioned metrics looked optimistic and hinted at a price rise, AMBCrypto dug deeper to see whether these will be enough to push ADA to a new range between $1 and $1.5. At press time, the token was trading at $0.984.

The good news was that while the token’s price dropped, its trading volume also fell. This indicated that there were chances of a trend reversal.

However, its social volume also declined – signaling a drop in Cardano’s popularity. Moreover, the latest price correction also caused ADA’s MVRV ratio to drop. 

The MA cross technical indicator revealed that the bulls were still ahead of the bears. However, considering the current market condition, ADA might find support near its 9-day MA.

In case of a slip under that mark, investors might expect Cardano plummeting once again within the $0.6-$0.8 range. 

Realistic or not, here’s ADA’s market cap in BTC’s terms  

But if the rising network activity and dropping volume spark a bull rally, ADA might once again test its resistance at $1.

In case of a breakout above that, expecting ADA eye $1.5 next won’t be surprising.