Is Cardano Eyeing $2 as Its Next Resistance Level?
- Cardanos price surged to the April 2022 range of $1.14, marking a 215% increase over the month.
- ADAs open interest hits $991 million, the highest since April 2021.
Cardano (ADA) has captured the spotlight in the crypto market by breaking its prolonged bearish trend by rising to $1.14its highest value since April 2022. This breakout follows a global crypto trend, which was boosted by the Bitcoin rally nearing the $100K zone.
At the time of writing, ADA is priced at $1.07, reflecting a 28% increase in the past 24 hours with a market cap of $37.55 billion. Additionally, the daily trading volume has spiked by 131% to $7.93 billion as ADAs open interest climbed 34% to $991 millionthe highest level since April 2021. These metrics highlight a surge in participation from both institutional and retail traders, signaling a strong market sentiment.
The rally in Cardano was fueled by the announcement of Gary Genslers departure as SEC chairman. Cardano, previously labeled a security by the SEC, faced bearish pressure from regulatory concerns. Also, Genslers stepping down has reignited investor confidence, leading to a renewed wave of buying activity in the crypto market.
Further, Cardanos rise above the $1.00 zone indicates a new phase of bullish momentum, driven by whale accumulation, heightened trading activity, and strong on-chain metrics. Still, the $1.14 resistance level is a hurdle for Cardano. Will the altcoin maintain its momentum and climb even higher?
Cardano Breaks Key Resistance Level
On the technical front, ADA has broken through a critical resistance level at the 23.6% Fibonacci retracement around $1.0147which had previously acted as a strong barrier. According to the ADA/USDT trading pairs, the cryptocurrency has formed a Golden Cross, where the 20-day EMA has crossed above the 50-day SMA, further emphasizing the ADAs bullish trajectory.
However, the RSI reading of 79.54 indicates that ADA has entered overbought territory, suggesting a potential pause or consolidation ahead. Meanwhile, a Chaikin Money Flow (CMF) value of 0.19 highlights strong accumulation and buying pressure on the 4-hour chart.
With whale accumulation and rising on-chain activity driving momentum, Cardanos breakout signals a promising chapter. Whether it can maintain its upward trajectory remains to be seen.
If the token surpasses its immediate resistance at $1.14, analysts anticipate targets at $1.25 and $1.53, which will trigger a huge surge in ADA price and send it to the $2 target.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
