Key Highlights:
- Analysts identify a symmetrical triangle on ADA’s chart, signaling a potential breakout ahead.
- Cardano’s trading volume exceeds 2021 levels, showing strong investor interest and market activity.
- Network growth continues as active addresses increase 11.99% and long-term holders rise 1.81%.
Cardano (ADA) has witnessed a substantial price increase over the past week, rallying 36.2% before briefly surpassing $1.00. The price later stabilized around $0.90, following a sharp reversal from its previous downtrend when ADA traded near $0.60.
Despite an 8.7% decline in the past 24 hours, ADA maintains a 23.2% annual gain, reflecting sustained investor confidence. The surge corresponds with increased network activity, rising adoption, and long-term accumulation by investors, which indicate potential for further price movement.
Possible Breakout for Cardano Price
Technical analysis by Ali Martinez has identified a symmetrical triangle pattern forming on ADA’s price chart. This pattern consists of converging trend lines, characterized by higher lows and lower highs, leading to a price squeeze. The analyst suggest that such formations typically result in a major breakout, either upward or downward, as price compression reaches the apex of the triangle.
The projected price movement, based on the triangle’s widest part, estimates a 40% shift. If ADA follows this trend to the upside, the price could reach approximately $1.2499. This pattern indicates that traders should monitor ADA closely for confirmation of a breakout direction.
Volume Surpasses All-Time High Levels
Further, market analysis by TapTools highlights a significant increase in ADA’s trading volume. Historical comparisons show that current volume levels exceed those observed when ADA reached its all-time high of $3.10 in 2021. This heightened trading activity suggests strong market interest, with increased buying or selling pressure that could influence price direction.
High volume is a key indicator of market strength, often signaling potential price movements. TapTools emphasizes that sustained volume levels can drive liquidity and participation, factors that typically precede major price shifts. Market watchers are focusing on whether buyers will sustain upward momentum or if selling pressure will limit further gains.
Cardano price Bullish Flag Breakout and Growing Network Metrics
Lucky’s data confirms that ADA is breaking off a bullish flag pattern, which shows an established upward movement will continue.
This pattern consists of a steep rally (flagpole) followed by a period of consolidation within a downward-sloping channel (flag). When ADA breaks past the resistance of this formation, it shows that buyers are increasing their activity. Lucky says;
“ADA has big eyes around the globe; reaching the top 5 this year is not a big deal, IMO.”
Elsewhere, according to IntoTheBlock data, several important network metrics show continuous growth. Investors show more interest in buying Bitcoin since new address numbers rose by 4.79%.
Additionally, active addresses have surged by 11.99%. The number of crypto holders with zero balances on their address increased by 12.26%, showing that investors are either relocating capital or buying into new holdings.
Ownership data further supports a bullish outlook.
Another separate chart shows that investors who have held Bitcoin for a year or longer have risen by 1.81%. Mid-term holders (1-12 months) have increased by 7.65%.
There has been a decrease of 11.75% in short-term traders who hold for fewer than 30 days causing less selling now.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
