Will Cardano (ADA) Price Surpass the Crucial Resistance to Trigger a Rally Targeting $1?

Cardano's price is working hard to surpass the crucial resistance since the breakout from the consolidation, while bears continue to restrict the rally

Cardano's price has been making strong efforts to pierce through a crucial resistance since kicking off its ascent from the consolidation, while bears are keeping the rally in check.

Also, the network has been integrating with various other platforms that are focused on a rise in the bullish momentum, aiming to surpass $1 as the new price discovery. Cardano bulls are displaying their strength. Soon after the rally triggered a strong rebound from the local bottoms, it has seen the platform experience a rise in volume. But the network activity has taken a hit, due to which the volatility has also remained lower. Despite short liquidations of over $800 million, the daily active addresses took a major hit during the times when the prices continued to rise. 

This drop has come in line with the volume that has witnessed a notable rise of over 30% to 40% in the past couple of days. The rise in the volume with a drop in the daily active addresses hints towards the whale accumulation, which has dropped the volatility. As a result, the ADA price is struggling to break through an important resistance level, despite holding the 200-day MA as a strong support level.  

The ADA price broke the short-term descending trend a few days ago but has been finding it difficult to secure the gains. The price is juggling in and out of $0.8 as it is failing to secure above $0.85, which could have lifted the token above the bearish influence. The on-chain data reveals a drop in the participation of the retail investors, which has kept the price accumulated within a range. Will the price break above the range?

Despite the bullish breakout, the ADA price remains restricted by bearish influence as the price is stuck within a descending parallel channel. Although the price has risen above the 200-day MA, it is struggling to break the resistance of the channel, hinting towards a drop in the strength of the bulls. On the other hand, the RSI has reached the upper threshold, and if it enters the overbought zone, a breakout can be expected from the pattern. 

This could also further lead to a bullish crossover between the 50 & 200-day MAs, and a validation of the Golden cross could potentially elevate the levels above $1. Hence, the upcoming weekly close could be important for the Cardano (ADA) price rally, as a failure to rise above $0.85 could compel the token to remain consolidated within the pattern.