Cardano Price Prediction: ADA Bulls Prepare for Lift-Off with Break Above This Key Level

Key Points 

• Cardano is trading just under 3.0% higher on Monday amid a broadly upbeat crypto market mood. 
• ADA bulls are eyeing a breakout from an ascending triangle structure that could send the cryptocurrency to the $0.67-69 region.  
• Cardano’s on-chain activity has continued to surge this year, according to a Kraken report.  

Cardano Rallies Alongside Broader Crypto Market 

ADA, the native token that powers the Cardano blockchain, was last trading higher by about 3.0% on the day on Monday and by about 4.4% higher in the last 24 hours in the mid-$0.5400s, lifted amid a broadly upbeat tone to broader cryptocurrency market sentiment. Optimism about the US economy not being as bad as feared in July following last week’s ISM PMI survey data and jobs figures is being cited as propping up risk sentiment, as focus shifts to the release of US CPI data later this week that should further inform expectations about the US economy and Fed tightening outlook.  

ADA Bulls Primed For Big Push to $0.67-69 Area 

ADA’s price action is looking very bullish. The cryptocurrency has been in an uptrend since mid-July, during which time it has consistently posted higher lows, whilst most recently finding strong support at the $0.50 level and at its 21-Day Moving Average.  

Over this time period, resistance at $0.55 has been acting as a ceiling to the price action. But that means that ADA/USD has formed an ascending triangle, a technical pattern that typically breaks to the upside. If ADA/USD is able to muster a big break above $0.55 resistance, that could potentially open the door to a swift rebound to the next key area of resistance around $0.67 to $0.69.  

Other major cryptocurrencies like Bitcoin and Ethereum also look to be in uptrends which is another potential source of support for ADA. Of course, ugly US inflation data this week could spoil the party for crypto, but if it does fall back below 9.0% YoY (as expected), then this could boost optimism that the macro environment in the US is improving, supporting the case for further upside.  

Major blockchain upgrades also potentially boost the bull case. Ethereum is set to make further progress towards its “Merge” to Ethereum 2.0 this week as it implements its final major trail run on the Goerli testnet. Meanwhile, Cardano is expected to implement its much-anticipated Vasil hard fork upgrade by the end of the month, which will substantially improve Cardano’s scalability.  

ADA On-chain Activity Continues 2022 Surge in July, Kraken Intelligence Report States 

In its “July 2022 crypto on-chain digest” report, cryptocurrency exchange Kraken noted that the recent surge in Cardano’s on-chain activity this year continued in July. “ADA on-chain activity continued its tear in volume with a +268% rise YTD and +16% MoM,” the report stated.  

“Though there is no single driver for the growth in ADA on-chain volume, several notable developments have occurred on the Cardano blockchain in recent months,” Kraken explained. “Namely, the platform saw increased volume likely due to the launch of its first DeFi exchange SundaeSwap, its first metaverse gaming application Pavia”

The report also noted a decline in year-to-date on-chain activity on the Dogecoin, Algorand, Ethereum and Bitcoin blockchains.  

" $ADA on-chain activity continued its tear in volume with a +268% rise YTD and +16% MoM. […] $DOGE paced behind $ALGO with a -84% YTD drop in volume, followed by $ETH (-68%) and $BTC (-18%). "

Full report from @krakenfx intelligence 👉https://t.co/vLuV9aHz4F#cardano

— Romain Pellerin (@rom1_pellerin) August 5, 2022