Has Cardano’s Rally Started? Investigating If ADA Reaches $1 This Time

Journalist

• The token’s low NVT ratio showed that it had reached its medium-term low.
• Technical analysis predicted a rise to $0.82 per ADA.

Cardano [ADA] The 90-day adjusted NVT ratio may suggest that we are close to nailing the bears in a coffin. For those unfamiliar with NVT, it stands for Network Value Per Transaction.

A high NVT means that the cryptocurrency has a high network value but low network activity. Investor sentiment can be pessimistic during seasons like this and prices can fall.

However, Cardano received an NVT of -1.23 from Messari. Low values like this suggest that transaction volume is increasing faster than market capitalization.

ADA prefers a handle on the cup

ADA’s drop was a bullish sign that could indicate an increase in the token’s value. AskFX was not surprised to see the volume exceed the market capital.

Recently, we reported that ADA was close to leaving the top 10 after other cryptocurrencies reversed its position. This may no longer be the case.

At the time of publication, ADA’s price was $0.48. The altcoins have recovered from the Bitcoin crash by a factor of 2.01%. [BTC] Halving.

We noticed that the NVT was valid when we looked at the technical information. The token formed a cup and handle pattern on the 4-hour ADA/USD chart between April 15 and 20.

The bulls were able to push the native Cardano coin above the $0.47 resistance here. ADA could consolidate for a while with the cup and handle formation.

The Relative Strength Index confirmed this potential consolidation. The RSI had dropped from its previous uptrend at the time of writing this article. This suggested that the token had lost its bullish momentum.

The 4,236 Fibonacci extension could push it to $0.82 by the halfway point. The price could initially reach $0.76 (the 3.618 Fib level) before breaking out and surpassing the psychological resistance of $0.80.

Is $1 possible this time?

Cardano’s value has not reached the predicted level over the past year. In this way, reaching this point could lead to a higher value than the last bull cycle in 2021.

At press time, there were 4.47 million ADA holders. On April 8, 100,000 new addresses purchased the token.

Read Cardano’s [ADA] Price Predictions 2024-2025

ADA’s price could move sideways if the number of holders remains the same in the next few days. The value for the period could be between $0.46 and $0.51.

However, in the coming months, it is possible that the demand for ADA will increase. If so, a $1 ADA equivalent for $1 could be possible. Cardano could remain a sideline for now.