Cardano (ADA), the seventh-largest altcoin by market value, exhibited high volatility with sharp price movements this week. Starting the week with an 18% increase to $0.67, ADA is now facing a steep decline.
Cryptocurrency analyst Ali Martinez identified a falling triangle formation in ADA on a lower time frame. According to Martinez, candlestick closures above the critical level of $0.638 could act as a catalyst for a bullish breakout, potentially pushing ADA’s price towards $0.70.
Martinez advised investors and traders to closely monitor the support level at $0.613, noting that a sign of weakness at this pivotal point could hinder ADA’s upward momentum. His analysis provides market participants with valuable insights by highlighting key levels to watch for potential price movements in Cardano.
According to data from the on-chain data provider IntoTheBlock, Cardano is currently trading within a demand zone, teetering on the edge of the range between $0.6199 and $0.6822 with a price of $0.6356. The data indicates that if Cardano surpasses the upper boundary of this range, there is limited potential until reaching the next price band marked by a barrier at $0.8457.
Cardano is presented as a strong alternative to Ethereum (ETH) and has realized a substantial rise of about 40% in the last 30 days. Critical on-chain metrics like Trading Volume and Active Wallet Addresses have supported the upward momentum in ADA. ADA’s trading volume has shown an increase over the past month, in alignment with its price movements.
The number of Active Wallet Addresses on the Cardano network serves as an indicator of demand among market participants for the altcoin, highlighting its significance among investors. Data provided by the on-chain data platform Santiment reveals a correlation between the increase in Active Wallet Addresses and ADA’s upward price trend. The convergence of such on-chain metrics suggests a positive sentiment in the market and an increased interest in Cardano within the crypto community.