thecryptobasic.com
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.