Cardano Needs a 1,960% Surge to Hit the $10 Mark

Is history about to repeat itself?

Cardano (ADA) has shown potential signs for a breakout, aiming for the $10 price target. It has held above $0.80 support and is testing resistance at $1.20.

If it surpasses this barrier, a significant rally may follow, but achieving this target would require a notable price increase.

Key Price Levels for ADA’s Potential Rally

ADA’s current price action reflects a historical fractal formation, reminiscent of previous bullish cycles.

$1.20 Resistance

The weekly chart indicates that ADA has demonstrated exponential surges after breaking major resistance zones in the past. Successful clearance of $1.20 might lead to a rally toward the desired $10 range.

Beyond $1.20, crucial psychological levels include $1.50, $2.20, and $3.00.

Support Level

Maintaining the support level above $0.80 is crucial. A drop below this level could jeopardize the bullish outlook and lead to a deeper pullback.

On-Chain Metrics: Does the Data Support a Rally?

Recent data points to a drop in Daily Active Addresses, indicating a decline in user activity on the network. An increase in active addresses has historically preceded price rallies, suggesting ADA requires a rise in network engagement to fuel its ascent.

Moreover, analyzing trading volume and liquidity is essential. Current volume shows steady buying pressure but lacks the explosive growth seen in previous breakouts. Increased volume during a price surge could indicate strong market confidence.

Historical Comparison: How Much Would ADA Need to Gain?

To gauge the potential upside, looking at ADA’s past bull runs can be helpful. In 2021, ADA experienced a 2,600% increase in a similar timeframe. To reach the $10 target, ADA would need a 1,960% increase. This isn’t impossible but would require strong market sentiment, increased adoption, and robust crypto market momentum.

Will ADA Break Out or Face Rejection?

The upcoming weeks are pivotal for determining Cardano’s trajectory. Successful clearance of the $1.20 resistance could lead ADA toward $2.20 and possibly beyond.

Failure to breach this resistance might result in further consolidation, delaying the anticipated rally.

Investors should keep an eye on on-chain activity, trading volume, and macroeconomic factors impacting the broader market. ADA’s historical performance showcases the potential for a major rally, but reaching $10 depends on sustained momentum and greater investor participation.

At its current pricing, ADA sits at a critical juncture. Traders will be keenly observing whether it rises to new highs or encounters resistance. This next major move is eagerly awaited.