Sahana Vibhute
The sleeping giant seems to have woken up! The third-generation token, Cardano, believed to be dead due to a massive drop in volatility, has begun to attract decent buying volume onto the platform. With the fundamentals strengthened, the bullish momentum is expected to rise, which may positively impact the ADA price in the long run. However, to mark the milestone, the token is required to surpass some crucial resistance, which appears to be a tedious job but not impossible for the bulls.
Cardano just launched Node 10.1, offering enhanced governance and delegation features that aim to boost scalability and decentralisation. With this, the development activity over the Cardano surged, surpassing Optimism, Ethereum, and Kusama. The recent surge was surprising, as new traders and whales jumped in to accumulate.
According to the data from Santiment, nearly 37,892 unique addresses and 697 address holdings worth $100K ADA made huge transfers not seen since September. The rise in the unique addresses suggests a greater number of traders entering the platform; among them, some may also be new ones. This rise in the interest of retail traders may increase the popularity of the token, which may in turn positively impact its value.
What’s Next—Will Cardano (ADA) Price Reach $1?
The recent price action has elevated the ADA price above the key resistance at $0.4, which it has struggled to achieve since the July drop. The supertrend has flipped to bullish, suggesting the start of the bullish spell. However, the token is required to achieve certain levels and the bulls need to defend them to reach beyond the yearly highs of around $0.8.
As the above chart suggests, the ADA price has broken above the decisive symmetrical triangle and surged above 0.236 FIB. It was also a rise from the double-top pattern, indicating a massive rise in the strength of the bulls. Besides, the Ichimoku cloud, which is used to identify the trends, is about to flip from bearish to bullish. Additionally, the on-balance volume, or OBV, a volume-based indicator, has flipped from the lows, suggesting a momental shift from the bearish trend.
Hence, the current trade setup suggests the ADA price has risen over the bearish influence and is preparing for a massive run towards $1. However, to do so, the price is required to rise and sustain over the interim targets at around $0.7 and $0.82 after successfully securing the levels above $0.5.
The development activity over Cardano has always been rising regardless of the ADA price action in the short term or long term. Recently, the co-founder of BitcoinOS, the layer-2 platform for Bitcoin, talked about bringing Bitcoin to Cardano. He says that even if 1% of BTC moves into Cardano, then the ADA TVL is expected to rise by over 40x. This could be the dominance that Cardano founder Charles Hoskinson was talking about. Therefore, it would be pretty hard to guess where the Cardano (ADA) price may go if this happens.
