Cardano (ADA) has caught the attention of investors by breaking through a significant resistance level within a week. Research indicates that the meme coin craze sweeping the market could also impact the Cardano network. It is suggested that an increase in activities and new users on the Cardano network could yield positive results. When looking at the technical analysis side, ADA‘s rise towards the critical resistance level of $1 is anticipated.
High Demand Intervals Offer Encouragement
The 12-hour price chart below shows ADA moving with an upward trend. At the time of writing, the RSI was at 58.5, indicating a slowdown in momentum but still reflecting a positive outlook for buyers.
Similar data was coming from the OBV side. Although there were noticeable declines in OBV on March 4 and 5, it later recovered and showed a strong comeback in the following days. As long as the indicator does not fall to the recent lows, buyers are expected to continue being the dominant force.
During this period, $0.787 and $0.917 are considered the key resistance levels for Cardano (ADA) to watch out for in the future. Considering the range of prices ADA has traded in over the last three months, it is expected that the price movement could extend to the $0.917 level. Beyond that, the $1 and $1.24 levels appear to be the next resistances.
The Outlook for Cardano (ADA)
Looking at the price movements and examining the technical indicators, there seems to be a strong upward pressure. However, measurements by Santiment suggest that the situation may not be that simple. Despite the rising prices, the average age of tokens appears to have been decreasing since mid-February.
Such conditions are interpreted as investors moving their tokens too much in order to take potential profits. This lack of future-oriented belief among investors could be a significant barrier to ADA’s rapid rise.
The MVRV ratio revealed that investors were in profit as ADA reached new local peaks. However, looking at the Open Interest, there has been a declining structure over the past two weeks.
When combined with the average token age measurement, it suggests that ADA might struggle to rise to $0.91 depending on the emerging factors.
