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- Cardano’s breakout and bullish patterns target $1.40, with resistance at $1.20 being crucial.
- Market sentiment and rising active addresses reinforce $ADA’s bullish momentum and continued growth.
Cardano [ADA] has recently broken the bullish flag pattern on the daily time frame, indicating the potential for further gains. At the time of writing, ADA was trading at $1.12, reflecting an impressive 7.11% increase in the past 24 hours.
The chart shows additional bullish patterns, such as a cup-and-handle and an inverted head and shoulders formation. These patterns further support the possibility of an extended rally.
If ADA manages to breach the USD 1.20 resistance level, it could set its sights on USD 1.40, a major psychological milestone.
Source: TradingView
Does Ripple’s stablecoin partnership fuel ADA’s momentum?
The announcement of a potential Ripple RLUSD stablecoin partnership with Cardano has sparked optimism among investors.
Charles Hoskinson, the founder of Cardano, emphasized the importance of stablecoins in the ecosystem, referring to the ongoing discussions about the integration of RLUSD.
XRP’s most recent rally in the market could fuel this sentiment and indirectly support Cardano’s price action. Furthermore, this partnership, if confirmed, could significantly enhance Cardano’s DeFi capabilities and generate even more interest from developers and users alike.
Technical indicators point to further upside potential
Key technical indicators boost confidence in Cardano’s bullish outlook. The RSI stood at 61.7 and showed strong upward momentum, but remained below the overbought level.
Furthermore, the MACD showed a bullish crossover, confirming growing buying pressure. These indicators are consistent with breakout patterns, suggesting that ADA’s rally could continue in the coming days.
If momentum continues, a rise to $1.20 could pave the way for a significant price increase.
Source: TradingView
ADA’s rising active addresses highlight network growth
Cardano’s on-chain activity is another bullish signal, as the number of daily active addresses has steadily increased. More than 46,000 active addresses were registered on January 16, reflecting increased network usage.
This steady increase in participation demonstrates increasing confidence in Cardano’s ecosystem and its potential to deliver long-term value.
Therefore, network growth could serve as a crucial driver of price sustainability in the ongoing rally.
Source: Santiment
Market sentiment points to a bullish belief
Source: Coinglass
Read Cardanos [ADA] Price forecast 2023-24
Will Cardano Reach $1.40?
Cardano’s breakout, coupled with bullish technical indicators and rising on-chain activity, suggests the rally has strong momentum. Additionally, the potential Ripple partnership adds further credibility to its long-term prospects.
Therefore, $ADA seems well positioned to reach USD 1.40 provided it clears the USD 1.20 resistance in the coming days.
