Cardano (ADA) is currently hovering within a very crucial demand zone, with potential for both new highs and corrective moves. The latest data suggests that the current price level of $0.37 is acting as a major support point for ADA, which could dictate its short-term trajectory.
The TD Sequential indicator also signals caution.
Minimal Resistance Ahead for Cardano (ADA)
According to popular crypto analyst Ali Martinez’s latest observation, ADA currently sits at a crucial demand zone, positioned between $0.37 and $0.38. This strategic zone, coupled with data indicating 166,470 wallets acquiring a substantial 4.88 billion ADA, has fueled optimism among traders.
ADA is facing minimal resistance on its path to potential new yearly highs. The key demand zone acts as a solid foundation, providing support for ADA to build upon its recent gains.
However, Martinez has urged traders to remain cautious and to closely monitor ADA’s performance, as a dip below the $0.37 support level could trigger a brief correction, potentially reaching $0.34.
“With minimal resistance ahead and solid support below, remaining above this zone could pave the way for $ADA to climb to new yearly highs. Still, watch out, as losing this support level could trigger a brief correction to $0.34.”
Further analysis reveals that the TD Sequential indicator for ADA has presented a sell signal on its weekly chart. This technical indicator suggests a potential shift in market dynamics. Losing the $0.37 support level, according to Martinez, might lead to a corrective move towards $0.34 or even $0.33.
ADA must successfully close above $0.40 to climb toward the next target, according to Martinez. As such, crossing this threshold could set the stage for the asset to make a sustained push toward $0.46, marking a pivotal point in its trajectory.
Martinez had previously pointed out that the existing consolidation pattern in Cardano bears a striking resemblance to the period between 2018 and 2020, excluding the market crash induced by COVID-19. In this scenario, there is a chance that ADA could exceed the $0.45 resistance level in the early weeks of December.
Should the upward momentum persist, ADA could hit $0.75 by the end of December.
Uptick in Developer Activity and On-Chain Metrics
Cardano faced significant challenges stemming from regulatory uncertainties and heightened competition from layer-2 networks like Base, Arbitrum, and Optimism in the second half of 2023.
Despite a temporary plateau, the network made a comeback with a notable surge in developer activity as it scored 572 throughout October and maintained its dominance in development activity within its public GitHub repositories.
Meanwhile, Cardano’s on-chain metrics also indicate a positive outlook. As reported earlier, the total count of addresses holding a balance on Cardano is hovering near its record high of 4.46 million. Additionally, a modest increase has also been observed in the number of active addresses.
Over the past month, the network has consistently maintained a transaction count of over 50,000, and the transaction volume has mostly stayed above $7 billion.