Cardano (ADA) has recently demonstrated a strong bullish breakout in the daily timeframe following a period of prolonged consolidation within a well-defined range.
Specifically, ADA has broken above significant resistance levels with its recent recapture of the $0.4 level, signaling a shift in market sentiment. In a recent update, trader Crypto Rand highlighted that the recent price action saw Cardano decisively break above a descending trendline that has been a barrier since previous highs.
This breach confirmed a reversal of the earlier downtrend, indicating renewed bullish sentiment among market participants. As of the latest update, ADA surpassed the $0.3800 resistance level.
Cardano Road to $1
This breakout points towards potential tests of higher resistance zones in the near term. Crypto Rand’s immediate target range lies between $0.4200 and $0.4400, where some resistance is expected.
Should the current momentum persist, mid-term projections suggest ADA could surge above the $0.5000 level. The trader suggests a potential journey toward even higher targets, eventually reaching the psychological $1 mark if the bullish momentum persists.
Bullish breakout for $ADA confirmed 🫡
Journey to $1 on the making? pic.twitter.com/Prw3EoJgiO
— Crypto Rand (@crypto_rand) September 26, 2024
At press time, Cardano is trading at $0.4023, boasting an over 12% gains over the past week.
Active and New Address Surging
Beyond price movements, on-chain metrics such as active and new addresses also reflect shifting sentiment within the Cardano network. Active addresses had peaked during the early 2021 market rally. Despite a subsequent ADA price decline following market downturns, the number of active addresses remains steady, particularly surging by over 11%.
Similarly, new address creation surged during the same period, showing strong user adoption. While there has been a decline post-peak, recent data reveals a 12.58% increase in new addresses over the past week.
Cardano’s Transaction Efficiency
Cardano’s transaction efficiency has also become a focal point of discussion within its community. Jaromir Tesar, a known advocate, recently highlighted the network’s ability to handle multiple asset transfers within a single block at minimal cost.
A block on the Cardano blockchain can process transfers to up to 1,600 users for just 5.16 ADA, approximately $2.38. This capability has prompted various reactions, with some viewing it as beneficial for institutional transactions. However, others remain skeptical, drawing comparisons to transaction efficiency within other ecosystems, notably Ethereum.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
