Cardano (ADA) price surges 3.67% today, reaching $0.83, and gradually nears the $1 psychological mark.

Fueling the anticipation of ADA price hitting the $1, Charles Hoskinson recently teased NFT-based free transactions on Cardano after the Midnight upgrade.

Cardano price is showing strength as it continues to rise toward the $1 psychological mark. The cryptocurrency has surged nearly 30% since last week’s low at $0.64, and it has now broken through a key resistance zone at $0.75.

This critical resistance held the altcoin price in consolidation since March 9, almost 60 days. However, bulls managed to push through the zone with a decisive daily closing price of $0.7774 on May 9, which also crossed the 23.60% trend-based Fibonacci level at $0.7593.

During the consolidation, Cardano price formed an inverted head and shoulder pattern as highlighted in the price chart. The neckline of the pattern overlapped with the 23.60% Fibonacci level and marks a price target of $1.08, evaluated by adding pattern’s height to the neckline.

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Recovery run in ADA surpasses the 200-day Exponential Moving Average (EMA) and influences a positive shift in 50, 100 and 200 EMAs trend. This increases the golden crossover chances in the 50 and 200 EMAs. Furthermore, the MACD and signal lines regain positive alignment with rising histograms, signaling a new wave of bullish trend.

The 50% Fibonacci level coincides with the $1.08 price target based on the pattern breakout, teasing a 30% upside potential from the current price levels.

Conversely, a bullish failure to hold above the $0.75 resistance turned support zone will nullify the pattern breakout. This could risk a pullback to the 50-day EMA at $0.70, followed by the next support level at $0.55.

As the technical analysis suggests a bullish bias in the short term, optimism in the derivatives market is also building up. According to Coinglass data, the ADA Open Interest (OI) has surged by 2.62% to $964 million with the funding rate floating above 0.011%. This highlights increased bullish activity as OI grows.

Notably, the Binance traders showcase confidence as 75% of Binance accounts hold long ADA positions. This increases the leverage-driven price rally chances and fuels bullish sentiments.

Founder Hopes to Attract Web2 Users With Free Transactions

In a recent interview, founder of Cardano, Charles Hoskinson made strong claims about possibly enabling free transactions with the upcoming Midnight sidechain. Powered by NFTs, where each NFT acts as an access pass, enabling a set number of transactions per day for free.

With this innovation, the founder hints at a model similar to Web2 with free accounts and services, without the need for a native token. Following the founder’s comment, the community is excited with many expecting this utility-first approach to fuel adoption spree before the Midnight rollout. This could fuel the next bullish wave in ADA prices.

In conclusion, as technical signals support the rising optimism in Cardano, the $1 price target seems imminent. Furthermore, the tailwinds from Binance traders and Charles Hoskinson’s claim on the Midnight upgrade hint at a longer uptrend.

Frequently Asked Questions (FAQs)

1. What did Charles Hoskinson say about free transactions on Cardano?

2. What is the price prediction for Cardano after the pattern breakout?

3. How are traders reacting to Cardano’s current trend?