Why is ADA Price Up? Cardano Rallies on Heightened Network Activity

Cardano’s native token ADA saw a significant price surge this week, rallying over 15% from around $0.30 to current levels of approximately $0.35. This price movement comes as ADA aims to test a key resistance zone, according to crypto analyst SwallowPremium.

In their recent TradingView analysis, SwallowPremium notes that ADA is showing a marked uptrend and approaching an area of resistance. They suggest traders be cautious and prepared for potential price reversals as ADA nears this zone.

Although the Relative Strength Index (RSI) shows ADA is currently overbought at 67, the Moving Average Convergence Divergence (MACD) indicator remains bullish with the MACD line above the signal line.

ADA’s rally this week also coincided with a spike in daily active addresses on the Cardano blockchain. On November 3rd, ADA active addresses passed 50,000 – the highest level since July.

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This on-chain activity hints that trader and developer interest in the network is increasing.

As ADA aims to test key resistance around $0.35, SwallowPremium recommends waiting for a rejection from this level before considering bearish positions. Upside however may be limited given overbought conditions.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!