- Cardano (ADA) is nearing a bullish breakout, eyeing a potential surge to $0.67
- Despite new user slowdown, Cardano’s loyal community is keeping transaction volumes steady
Cardano (ADA) has registered a slight upward trend over the past week. In fact, at press time, ADA was trading at $0.3406, following a 2.22% hike over the last 24 hours.
Despite some volatility, however, the price has shown signs of consolidation around the $0.34 level – Suggesting a period of stability. This stability may be a precursor to further price movements as market participants watch for potential shifts in sentiment.
The prevailing market conditions reflect ADA’s ability to maintain a stable trading range, despite the broader crypto market’s volatility. This is something that resulted in ADA’s market cap hitting $12.13 billion, supported by a 24-hour trading volume of $215.3 million.
A potential bullish breakout
A technical analysis of Cardano revealed a potential bullish breakout from its ongoing downtrend. ADA has been trading within a descending channel, but there are indications that it may soon break above this pattern too.
If ADA can breach the $0.45 resistance level, it could pave the way for a rally towards $0.67. This scenario would represent a significant price hike from its press time levels.
Source: TradingView
Traders are closely monitoring the $0.45 resistance level as a key indicator of any potential upward movement. A successful breach of this level could confirm the beginning of a bullish trend, leading to greater investor confidence and market participation.
Moreover, the Bollinger Bands pointed to a potential reversal for ADA as it neared the lower band, indicating oversold conditions. If ADA stays above $0.34 with rising volume, a recovery towards $0.36 could follow soon.
Source: TradingView
Here, it’s worth noting that despite the challenges in attracting new users, Cardano has maintained a stable transaction count. The number of addresses with a balance has remained steady at around 4.45 million for over a year.
What this means is that while the network is facing difficulties in onboarding new users, its existing user base remains active and engaged.
Source: IntoTheBlock
Source: X
According to data from IntoTheBlock, the transaction count and active user base on Cardano have remained consistent since April. This is a sign of a committed community, one that continues to utilize the network’s capabilities, even as attention shifts to other platforms like Solana and Base.
Finally, what all this data means is that while growth in new users may have slowed down, Cardano’s core user base remains loyal and continues to support the network’s activities.
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