Cardano price aims for $0.85 target as it trades at crucial demand zone
- Cardano on-chain metrics signal ADA is in a crucial demand zone, once cleared there is no major resistance till $0.8457.
- Cardano’s transaction volume and active addresses increased since the beginning of the month, alongside the ADA price rally.
- ADA price yielded nearly 40% weekly gains for holders.
Cardano price is in a crucial demand zone between $0.6199 and $0.6822, on Friday. The altcoin has yielded consistent gains for holders in the past two weeks. ADA price gains are likely sustainable according to bullish on-chain metrics.
Also read: XRP analyst says massive price rally to $1.50 likely post Spot Bitcoin ETF approval, BTC halving
Cardano on-chain metrics support ADA gains
Cardano, an Ethereum alternative cryptocurrency, rallied nearly 40% in the past month. The altcoin’s on-chain metrics, including Transaction Volume, and Active Addresses, support a rally in ADA.
The transaction volume in ADA climbed in the past month, alongside Cardano price, as seen in the below chart from crypto intelligence tracker Santiment.
 [16.32.52, 15 Dec, 2023]-638382374335977197.png)
Transaction Volume (ADA). Source: Santiment
Active Addresses in Cardano signal the demand for the altcoin among market participants and the altcoin’s relevance among traders. As seen in the chart from Santiment, the increase in Active Addresses is consistent with Cardano’s price rally.
 [16.32.43, 15 Dec, 2023]-638382374720852847.png)
Active Addresses 24h (ADA). Source: Santiment
Cardano price enters crucial demand zone
According to data from IntoTheBlock, at Cardano’s current price of $0.6356, the token is in a demand zone that ranges from $0.6199 and $0.6822. Once Cardano price rallies past the upper boundary of the range it will not meet substantial potential supply until the next price band at the $0.8457 hurdle. This suggests a fairly challenge-free ascent to that level.
Global In/Out of the Money. Source: IntoTheBlock
The next ADA price target is the 61.8% Fibonacci retracement level of the move down from the April 4, 2022 top of $1.2436 to the December 29, 2022 low of $0.2369.
ADA/USDT 1-day chart
A daily candlestick close below the 38.2% Fib level at $0.6214 could invalidate the bullish thesis for Cardano.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
