Cardano (ADA), the world’s eighth-largest cryptocurrency by market capitalization, recently surged past a crucial resistance level of $0.7, sparking discussions about its potential to revisit or surpass its all-time high of $3.1.
The surge in ADA’s price comes as investors shift their focus from Bitcoin and Ethereum to smaller-cap cryptocurrencies, with Dogecoin and Shiba Inu being the biggest gainers, up 60% and 110%, respectively, in the past week.
The recent price action in ADA can be attributed to the overall strength of the crypto market. The recent entry of Ergo into the Cardano network has also added to the momentum. Ergo is a Cardano-compatible network that enables smart contract applications, and the recent transfer of a significant portion of Ergo (ERG) tokens to the Cardano network has boosted ADA’s price.
Cardano has been gaining traction and showing promising growth in recent times. According to on-chain analytics, there has been a significant increase in the number of new wallets on the Cardano network, indicating a surge in adoption and investor interest. The total number of Cardano wallets is on the brink of reaching 4.5 million, which speaks volumes about the network’s expanding reach and appeal.
In addition to the growth in new wallets, the Cardano network’s active daily addresses have consistently been above 30,000 since the year’s start, hitting a peak of 48,095 on March 2. The surge in active participation aa signals mounting interest in ADA, hinting at a potential surge in demand and subsequent upward momentum in its price.
Notably, the recent surge in ADA’s price has also pushed the price above the 200-week moving average, with resistance at $0.75 being the next challenge. If ADA can clear this resistance level, it could swiftly increase to the $1 mark.
James McKay, founder of crypto research firm McKay Research, noted that ADA has broken out from a cup & handle formation that dates back to June 2022. Currently up 20% for the week, he noted that ADA could move swiftly up to the $1 mark if it clears $0.75 resistance. However, McKay cautioned that ADA is starting to look overcooked on the RSI, and a retest of the $0.66 support level could be more likely.
ADA was trading at $0.76 at press time, up 5.91% in the past 24 hours.
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