Cardano (ADA) Set to Skyrocket? $1.50 Breakout Looms as Activity Surges

Cardano (ADA) is trading within a symmetrical triangle pattern, signaling a period of consolidation as the price narrows toward the apex of the formation. 

Crypto analyst Ali predicts that ADA could rise to $1.50 if it breaks through the $1.10 resistance level. Fibonacci retracement levels further support this analysis, providing potential targets for both upward and downward movements.

Symmetrical Triangle Signals Imminent Breakout

The symmetrical triangle is defined by a descending resistance trendline, connecting lower highs, and an ascending support trendline, marking higher lows. This pattern often reflects market indecision, with reduced volatility as the price approaches the triangle’s apex.

Recent price action shows Cardano fluctuating within this triangle, maintaining the support and resistance levels. The price of ADA, at $1.067, positions it slightly above the 0.5 Fibonacci retracement level of $0.9944. 

This level serves as a critical mid-point for price activity, with the $1.10 resistance level identified as the threshold for a bullish breakout.

Fibonacci Levels Provide Key Targets

Fibonacci retracement and extension levels on the chart outline potential price zones for both bullish and bearish scenarios. 

Below the current price, $0.8984 (0.618 level) acts as a significant support zone, while $0.7816 (0.786 level) could provide a deeper level of protection if the price breaks down.

On the upside, the $1.0906 (0.382 Fibonacci level) serves as the next resistance point ahead of $1.10. A confirmed breakout above this level could see ADA targeting $1.5027, aligning with the 1.272 Fibonacci extension level. 

If momentum persists, ADA might aim for $1.6740, corresponding to the 1.414 Fibonacci extension.

Increasing On-Chain Activity Suggests Growing Interest

Sentiment data shows that Cardano’s network has experienced a surge in daily active addresses, reaching 50,828. 

#Cardano $ADA network activity continues to show strength, with daily active addresses hitting higher highs and reaching 50,828! pic.twitter.com/V39doNbNST

— Ali (@ali_charts) January 22, 2025

This increase highlights rising user interaction with the blockchain, suggesting growing interest at current price levels. The uptick in activity comes despite ADA’s recent price struggles, including a 5.74% decline over the past week and a modest -0.31% dip in the last 24 hours. 

Cardano’s circulating supply of 36 billion ADA supports a market cap of $35.56 billion.

Short Positions and Bearish Sentiment Dominate

Market data from Coinglass reveals an increase in ADA short positions, with the Long/Short Ratio falling to 0.824, its lowest in over a month. This trend reflects bearish sentiment among traders. 

However, analysts note that an influx of short positions could trigger a short squeeze, potentially forcing traders to buy back ADA, driving prices higher.

With ADA consolidating near critical levels, traders are watching closely for a decisive breakout in either direction.

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