Cardano (ADA) Continues to Draw Attention as Its Price Activity Leads to Speculations About Hitting a Significant Target by Mid-2025

With technical indicators and on-chain data sending mixed signals, ADA's prospects have stirred excitement among market participants.

Cardano (ADA) price continues to rally, up 20% in the last 24 hours, and now trading above the key Fibonacci retracement level of 0.618 at around $0.7.

After rallying above its 50-day and 200-day moving averages at $0.39 and $0.38, respectively, ADA price showed signs of slowing down as it approached a crucial resistance zone. However, buying pressure remained strong, enabling the altcoin to breach this key level.

As ADA price attempts to rally further, it faces the next Fibonacci retracement level of 0.8 at around $0.8. If buyers can push the price above this level, it could open up a path towards higher targets.

On the downside, support levels can be found at the 50-day and 200-day moving averages, which could cushion any sharp跌幅s.

Relative Strength Index (RSI) on the 4-hour chart indicates that ADA is now in overbought territory, with an RSI value of 82.81. This suggests that traders might be looking to secure some profits, which could lead to a minor price correction in the short term.

Cardano On-Chain MetricsHighlight Increasing Activity

Examining Cardano's on-chain activity reveals that there were over 58,000 daily active addresses in a recent trading session, showcasing a high level of network activity.

Zooming out to observe the 30-day moving average further emphasizes this engagement, as over 637,000 addresses were active over the past month. This sustained rise in user engagement bodes well for ADA's potential long-term growth.

Cardano Derivatives Market Trader Buzz and Risks

Observing the derivatives arena, we notice an uptick in trading activity, with Coinglass reporting a surge in long positions and notable short liquidations, particularly around $0.55, indicating a robust support level.

As the market sentiment remains bullish, traders are advised to proceed with caution, especially when employing excessive leverage, which could trigger increased volatility in the event of a price correction.

Cardano's path forward hinges on sustaining its upward momentum, overcoming significant resistance levels, and capitalizing on its ecosystem's growth.