Cardano Price Can Rally To $0.45 If This Key Resistance Yields

Cardano price is currently surging as it seeks to reclaim 11th place ahead of Justin Sun’s Tron Network (TRON), which Sun believes can reach $4 billion in revenue with his new strategy. ADA bulls have returned in full force, driving the price up 8.1% in the last 24 hours to $0.3719. On-chain analysis shows a rise in active addresses on the network, a typical precursor to a price increase. Additionally, trader sentiment has turned bullish, with more investors rushing to purchase the asset. Cardano now faces a critical resistance zone, and its next upward move will depend on how it performs at this key milestone.

Spike in Active Addresses Reflect Cardano Price Surge

Data from Santiment shows an increase in active addresses since it hit a yearly low on August 18, 2024. This date also aligns with the end of the RareEvo blockchain event, where Cardano unveiled its Hydra Layer 2 scaling solution, proving it to be a real contender among highly scalable networks.

This spike in the number of active addresses could signal new users coming in to test the network or new investors jumping in to take advantage of the hype around Hydra and the upcoming Chang hard fork upgrade.

This observation is further proven by IntoTheBlock Large Holder Netflow data, which shows that Cardano whales have been adding to their bags since August 18.

Traders are taking advantage of the hype around Cardano to make money. Coinglass Liquidation data shows over $10 million worth of cumulative Short Liquidity Leverage between $0.319 and $0.367. In contrast, there are only $3.47 million worth of Longs, and they are dwindling fast.

This imbalance indicates that traders are optimistic about Cardano price surging higher in the coming days and, hence, are willing to bet their money on that assessment.

The largest portion of the $10 million liquidity is situated around $0.343, which means this is the best immediate support level for Cardano should market conditions change.

All Ahead Flank for ADA Price After $0.3750

Cardano price defied a classic bearish continuation pattern and broke out to the upside, which suggests the beginning of an uptrend. This strong market performance suggests that ADA price is looking to regain its all-time highs.

The breakout is accompanied by a strong bullish candlestick, a positive signal for continued upward movement. The size of the candlestick indicates strong buying pressure.

ADA is likely to find resistance at $0.3703, where the price is currently testing, and above that, $0.4340, aligned with the upper Bollinger Band and a previous consolidation area.

Additionally, the price of Cardano is currently pushing toward the upper Bollinger Band, indicating that the asset might be entering an overbought condition and that there is strong momentum. A positive Chaikin Money Flow (CMF) value supports this, indicating money inflow into ADA.

Holding or accumulating ADA may work if the bullish trend continues and breaks through the $0.4340 resistance. If the price remains above the $0.3430 level, traders should expect a longer-term target around $0.5000.

However, if the Cardano price fails to breach and maintain above $0.3750, it may show market weakness and could cause it to drop to 0.3067, invalidating the current bullish thesis.

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