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The price of Cardano 
$0.790012 (ADA) is consolidating around the $1.10 level while displaying strong signals indicating a potential upward movement. Cryptocurrency analyst Ali Charts has identified a bullish pennant formation in ADA’s price chart, suggesting that an upward movement could be on the horizon.
Technical Analysis Insights
The observed bullish pennant formation in Cardano’s price chart typically indicates the continuation of an upward trend. This pattern is characterized by a consolidation period that takes on a triangular shape following a sharp price increase.
The resistance level of the pennant is around $1.11, while the support level is near $1.10. If ADA surpasses the upper trend line, a price rise to $1.40 could be targeted. Ali Charts stated, “Cardano could reach $3 swiftly and smoothly.” This ADA price prediction aligns with previous analyses from Coingape, which forecast a similar price surge following the completion of Elliott Waves.
Increased Network Activity Boosts Investor Confidence
In addition to technical signals, the rise in Cardano’s network activity may support price movements. According to DeFiLlama data, the Total Value Locked (TVL) in the Cardano blockchain has risen to $595 million, marking a 33% increase since the beginning of the year.
The increase in TVL indicates a growing interest in Cardano’s decentralized finance (DeFi) ecosystem, attracting both individual and institutional investors. Furthermore, trading volumes have reached $10.64 million, signaling increased activity on the blockchain.
Additionally, the number of funded wallets on the Cardano network has significantly increased. Since December 19, more than 10,000 new wallets have been added, bringing the total to approximately 4.38 million. This influx of new investors suggests a positive market sentiment.
The Cardano price forecast requires breaking specific resistance levels while maintaining upward momentum. The current resistance level identified by Donchian Channels is around $1.20.
Surpassing this level could open the path for a move towards the $1.34 target, which corresponds to the 1.618 Fibonacci extension.
ADA, by maintaining its buying pressure and overcoming the current consolidation phase, could potentially rise to $7. However, if it falls below the $1.20 level, $1.00 will be considered a critical support level. Breaching this support could lead to further declines and a test of the $0.92 level.
Technical indicators also support this outlook. The Relative Strength Index (RSI) stands at 67, reflecting strong buying activity but nearing the overbought region. Meanwhile, the MACD (Moving Average Convergence Divergence) continues to remain in the bullish zone, indicating sustained upward pressure.
For investors, monitoring Cardano’s current price movements and technical analyses offers vital indicators for evaluating potential future profit opportunities. Moreover, the increase in network activity enhances interest in Cardano’s ecosystem and boosts investor confidence.
