Cardano (ADA) is poised to break its long-standing resistance level at $1, following a historical trend. To achieve this, it needs to maintain a price range of $0.45 to $0.50. Despite recent volatility fueled by geopolitical tension and the upcoming Bitcoin halving, Cardano’s ecosystem has been flourishing. On March 21, 2024, the total number of transactions reached an impressive 83.6 million.
Currently, ADA is trading at $0.44, far below its all-time high of $3. However, there is a discrepancy between its price action and its 24-hour trading volume, which has increased by 8% to $509 million. Renowned analyst Trend Rider believes that ADA is in a crucial position, similar to October 2020 when it fell to $0.10 before surging to $3. The Relative Strength Index (RSI) crossovers have historically indicated the beginning of bull and bear markets for ADA. With the RSI interacting with its moving average, there could be a significant price move in the near future.
If ADA manages to hold its current zone, it could stage an explosive run to break the $1 resistance level. However, falling below the $0.45 to $0.50 range could send ADA down to $0.25. Despite this, Trend Rider believes that the underlying support levels are strong and could potentially lead to a bullish breakout.
Cardano’s ecosystem has been thriving, as evidenced by a 166% quarter-over-quarter surge in Cardano’s Total Value Locked (TVL) according to a 2023 Messari report. Its year-over-year increase was a remarkable 693%. On-chain data shows that the total number of transactions has reached 83.6 million, averaging between 50,000 and 70,000 daily. Cardano has surpassed several renowned crypto projects, including Polkadot, Kusama, Cosmos, and Ethereum, making it the blockchain with the highest development activity during Q4 2023.
In conclusion, Cardano (ADA) has the potential to break its resistance level at $1, and its ecosystem continues to flourish with impressive growth and adoption.