- Summary:
- ADA price has grown at a relatively slower rate compared to its peers. However, key metrics show it has the hallmarks of a bullish breakout.
Cardano price has found stablility above $1 and currently trades near two-and-a half year highs. At its current level, the coin is about 63% below its all-time high price set in September 2021. ADA price was up by 5% at the time of writing and traded at $1.130. That brought its weekly gains to 11%, signaling a strong bullish hold.
On-chain metrics signals potential ADA price spike
As I predicted here, ADA has grown to establish support at $1. There are certainly better-yielding assets in the current crypto market, but ADA price holds a relatively stronger growth potential.
Input Output’s (IO) recent successful testing of zero knowledge integration into smart contracts elevates it in the DeFi space and equips it to mount a stronger challenge to Ethereum’s dominance. With the DeFi Total Value Locked (TVL) clocking $124 billion, Cardano’s upgrade is a good value proposition.
Meanwhile, ADA price upside is also supported by a strong growth in the asset’s daily trading volume. CoinMarketCap reported a 45% spike in the coin’s 24-hour trading volume, signaling rising investor interest.
Also, market data aggregation site, IntoTheBlock showed that 24% of ADA holders are “Out of the Money.” That offers a greater growth headroom for Cardano price, since nearly a quarter of all token holders have no incentive to sell. Therefore, that will support the upside if they hold out for a profit.
ADA price prediction
Pivot: The momentum on ADA price has the pivot at $1.11, with the buyers in control above it. However, a break below that level will signal the onset of bearish momentum.
Resistance: The first resistance is likely to be at $1.15. However, extended bullish control will break above that level and could test $1.17.
Support: With the sellers in control, immediate support is likely to be at $1.08. A break below that level will invalidate the upside narrative. Meanwhile, the momentum could establish the second ADAUSD support at $1.06.
