Prominent analysts predict that ADA could reach new all-time highs in 2023, with potential targets of $0.7497 and $1.80.
Cardano (ADA) is currently within a very crucial demand zone, with potential for both new highs and corrective moves. The latest data suggests that the current price level of $0.37 is acting as a major support point for ADA, which could dictate its short-term trajectory. The TD Sequential indicator also indicates caution.
Minimal Resistance Ahead for Cardano (ADA)
According to the latest report by popular crypto analyst Ali Martinez, ADA is currently in a crucial demand zone, situated between $0.37 and $0.38. This strategic zone, coupled with data indicating that 166,470 wallets acquired a substantial 4.88 billion ADA, has fueled optimism among traders. ADA faces minimal resistance on its way to possible new yearly highs. The key demand zone acts as a solid base, providing support for ADA to build on its recent gains.
However, Martinez has urged traders to remain cautious and closely monitor ADA’s performance, as a drop below the $0.37 support level could trigger a brief correction, potentially reaching $0.34,
Further analysis reveals that the TD Sequential indicator for ADA has presented a sell signal on its weekly chart. This technical indicator suggests a possible change in market dynamics. Losing the $0.37 support level, according to Martinez, could lead to a corrective move towards $0.34 or even $0.33.
ADA must successfully close above $0.40 to rise towards the next target, according to Martínez. Crossing this threshold could set the stage for the asset to make a sustained push towards $0.46, marking a crucial point in its trajectory.
Martínez had previously noted that the existing consolidation pattern on Cardano bears a striking resemblance to the period between 2018 and 2020, excluding the COVID-19-induced market crash. In this scenario, there is a possibility that ADA breaks the $0.45 resistance level in the first weeks of December. If the bullish momentum persists, ADA could reach $0.75 by the end of December.
Another crypto analyst, CoinsKid, speculated last week that Cardano could be preparing for a significant move to $0.7497 and eventually $1.80. These prices represent key untapped areas of resistance.
AI-powered algorithms from crypto analytics platform CoinCodex predict that ADA could continue its upward trend, potentially reaching $0.86 in the next three months, implying an upside of over 125%.
The confluence of market momentum, strategic developments within the Cardano ecosystem, and analytical predictions point towards a bullish future for ADA. The cryptocurrency community and investors are closely watching Cardano’s trajectory, anticipating new heights for this asset in constant evolution.
Increased Developer Activity and On-Chain Metrics
Cardano faced significant challenges arising from regulatory uncertainties and increased competition from Layer 2 networks such as Base, Arbitrum, and Optimism in the second half of 2023. It returned with a notable increase in developer activity, earning a score of 572 throughout October and maintaining its dominance in development activity within its public GitHub repositories.
Cardano’s on-chain metrics also indicate a positive outlook. The total address count holding a balance on Cardano is approaching its record of 4.46 million. Over the past month, the network has consistently maintained a transaction count of over 50,000, and transaction volume has mostly remained above $7 billion.
By Audy Castaneda