Cardano Price Prediction: ADA Retests Key $0.55 Resistance, Bullish Breakout Becoming Ever More Likely

Key Points 

• Cardano has seen an impressive rebound from Wednesday’s lows around $0.50, boosted amid soft US inflation data.  
• The cryptocurrency continues to eye a bullish ascending triangle breakout towards $0.67-69.  
• One widely followed Cardano influencer argued that daily transactions are set to surge as Cardano’s DeFi ecosystem grows.  

Cardano Rebounds Powerfully from $0.50, Eyes Ascending Triangle Breakout 

ADA, the native token that powers the Cardano blockchain, has seen an impressive bounce in the last 24 hours. The cryptocurrency found strong support when it fell back to test the $0.50 level and its 21-Day Moving Average on Wednesday and has since rallied back to test the key $0.55 resistance area once again on Thursday.  

The cryptocurrency was last changing hands at just under $0.54, having received a boost alongside the broader cryptocurrency market on Wednesday in wake of softer-than-expected US inflation figures for July. This data eased concerns about overly aggressive Fed tightening at upcoming meetings and was a welcome validation of the hypothesis that US inflationary pressures have now peaked.  

Cardano continues to threaten a major bullish breakout. The cryptocurrency has formed an ascending triangle since mid-July, consistently posting higher lows, but with $0.55 acting as a ceiling. Such technical patterns often precede a bullish breakout given a “build-up” of buying pressure. If Cardano is able to break above $0.55 in the coming sessions, the door is open for a swift surge towards the next key area of resistance in the $0.67-69 area. Above that, bulls may also target a retest of the significant $0.75 resistance zone, where the 200-Day Moving Average also resides.  

Cardano Transaction Likely to Rise, Argues Cardano Influencer 

The Cardano network is currently processing between 60,000-90,000 transactions per day, according to Messari data. That is substantially lower than some of its competitor blockchains, such as Solana, which processes over 30 million transactions per day. As a result, Cardano has been criticized by its competitors as being a “ghost” blockchain.  

However, as Cardano influencer @cardano_whale argued on Twitter on Thursday, this is likely to substantially rise in the future. According to @cardano_whale, “those who measure adoption purely by network activity… will be shocked as synthetics, stables (stablecoins), lending hit soon,” referring to upcoming Decentralized Finance (DeFi) projects set for release on the Cardano network soon.  

Cardano’s current transaction numbers don’t include activity on these projects and it’s “not hard to see what happens when liquidity of lending is added and trading possibilities (platforms + assets) multiply”. @cardano_whale noted that this growth in daily transactions would be facilitated by growth in the Cardano network’s capacity. The upcoming Vasil hard fork upgrade, expected later this month, is expected to deliver just that.  

In a pushback against criticism of Cardano’s comparatively low daily transaction count, the Twitter influencer pointed out that “coins that claim ridiculously high transactions per day lie and count network overhead, while Cardano’s figures are understated as one UTxO can transfer dozens of tokens”.  

Transaction count is ~75k daily. Many multiples from 2018/19 bc of NFTs and DeFi mainly, latter providing self sustaining flow due to arbitrage etc

Those who measure adoption purely by network activity (vs community size) will be shocked as synthetics, stables, lending hit soon

— ADA whale (@cardano_whale) August 11, 2022