Cardano hit an over 50% yearly low of $0.07 in mid-September after achieving its yearly high of $0.155 in late July, shortly before the launch of the Shelley Network.
Following the successful launch of Shelley, Cardano – also dubbed the Ethereum killer and the most decentralized blockchain network – has been experiencing increased network usage.
Currently, multiple on-chain analysis metrics show that Cardano is gearing up for a further upward movement. This movement will however only hold if ADA is able to overcome a key resistance level before gaining higher grounds.
Cardano Ready to Recover and Go Higher
The price of Cardano for the past two months can accurately be summarized using its 200 and 100 moving averages. After Cardano’s lowest fall in September, its 200-day MA kept prices from plummeting further and has served as a much-needed rebound zone.
By mid-October, the 100-day MA bounced back by 51.5% and managed to hold this level. The two barriers have served as metrics for Cardano’s monthly price action. Data from CoinMarketCap shows ADA’s monthly and weekly high of $0.11 with a 6.15% drop in the last 24 hours trading at $0.10.
ADA is trying to cut through upper resistance to recover some of its lost ground but as data indicates, the smart contract coin has a difficult task ahead. According to the In/Out of the Money Around Price (IOMAP) model by IntoTheBlock, the 100-day moving average denotes a vital supply hurdle to surmount.
Over 20,000 ADA addresses contain close to 3.6 billion of ADA purchased at the price of $0.107 to $0.112. If these holders decide to exit their underwater positions in large numbers, the pressure would derail or stop the upward price movement.
However, if the network experiences a higher demand for ADA than the selling pressure, Cardano may break above the resistance and reach its next target at $0.125 to $0.13.
ADA Price: Network Growth vs. Greed
Cardano’s chance of holding its upward trend lies in its impressive network growth. An increased number of daily addresses has been noted, with over 8,000 new addresses recorded in less than one week, representing a 202% rise.
Data from ADAPool also shows that more than half of the total ADA supply at 61.8% is staked on the network in 1260 staking pools. The sudden uptick in network usage often guarantees increased user adoption with time, with network growth being regarded as one of the most reliable tools for price prediction.
Despite the existence of rapid network growth, market greed among the participants will affect price movement. If greed is too high, ADA might fail to hold support above 0.104, and prices might be pushed down to as low as $0.089.
