ADA Price Poised for 9% Surge Amid Rising Network Activity

ADA price increased on the last day together with the entire market. The ADA chart shows some upward movement, but weak volume signals the rise may be short-lived. While improving network activity is positive for price, a major overhead resistance may prove hard to break if ADA bulls have nothing else more tangible to ride on. Consequently, Cardano price may be at the mercy of Bitcoin for now as Chang upgrade launch could become a sell-the-news event.

Can ADA Price Inch Higher?

The cardano price chart shows a clear overall downward trend. The price recently formed a rising wedge pattern, which is typically a bearish continuation pattern.

Cardano price has support around $0.28, which aligns with the projected breakdown target from the wedge pattern and previous support areas.

There is some resistance around $0.36 – $0.38, where the 200 exponential moving average (EMA) (black line) is currently at. Further resistance also exists near the rising wedge’s upper boundary.

The pattern of recent candlesticks within the wedge suggests indecision but with a slight bearish bias, especially considering the wedge is preceded by a downward trend. Nevertheless, if the ADA price action can rise and break above the 200 EMA, it would invalidate the bearish thesis.

The Relative Strength Index (RSI) is currently at 58.78, which indicates neutral to slightly bullish momentum, but it’s approaching levels where it could turn bearish.

The price of Cardano is below the 200 EMA, confirming the bearish trend. ADA also just broke above the 50 EMA (green line), which signals some level of bull strength building. The Chaikin Money Flow (CMF) at 0.03 shows a slight capital inflow but is not strong enough to counter the bearish setup.

The ADA price action shows mixed signals. However, if it fails to break above the 200 EMA, it may signal bulls’ weakness, and despite the recovering markets, the price may drop lower to $0.261.

Network Stats Hint Short-Term Rally

Data from Messari Research, a blockchain analysis firm, shows Cardano network activity is rising. While the number of transactions hit a two-month high, the cost of transactions on the network dropped to a 9-month low. This suggests the Cardano network is scalable and can take on more traffic without being expensive. A scalable network is a bullish signal for price.

Additionally, the number of active addresses on the Cardano network surpassed a four-month high, rallying back to figures recorded around the March mini-bull run. A rise in active addresses signals investors are flocking into the network, which may translate to a bullish price.

Cardano’s open interest, per Coinalyze, increased by 6.16% over the last 24 hours, indicating an inflow of capital into the asset. Coupled with the increasing price, the ADA price may continue rising until the next major resistance around 200 EMA. That would constitute a 9% increase from the current price.

Additionally, IntoTheBlock analytics show the number of large transactions on Cardano increased notably between August 7 and 8. While not as high as on August 5, it is still a 0.10% markup from yesterday’s low.

Coupled with the increasing price of Cardano, it may signal that whales are accumulating Cardano, which is a bullish signal.