Cardano Price Prediction: $0.40 target still in play for ADA as bullish metrics spur optimism

Cardano (ADA) price uptrend remains sturdy, showing no exhaustion despite being up for almost three weeks in a row. It has seen the cryptocurrency break past key levels, and now a continuation of the trend seems likely, steered by multiple bullish fundamentals.

Also Read: Cardano price likely to extend gains with bullish on-chain metrics

Cardano price could hit $0.40 soon

Cardano (ADA) price is up almost 50% since the crypto market turned bullish on October 18. The move has seen ADA breach key barricades and now faces the $0.37 resistance level.

Should the bulls increase their buying pressure, Cardano price could shatter $0.37 resistance level and use it as the jumping off point to hit the $0.40 target objective. In a highly bullish case, the gains could extend for the altcoin to test the $0.45 range high. Such a move would denote a 25% climb above current levels.

The parabolic SAR trailing Cardano price from the south supports this outlook, providing support at $0.33. Further, the Moving Average Convergence Divergence (MACD) is in the positive zone in an overall uptrend as more buyers flock to the scene.

ADA/USDT 1-day chart

Cardano on-chain metrics support the bullish outlook

ADA bullish outlook is supported by the Market Value to Realized Value Ratio (MVRV) indicator, showing that Cardano price is still not in the dangerous zone, thereby allowing room for more gains. Also, social dominance and social volume metrics have also increased significantly, indicating that ADA mentions on crypto-related social media are increasing, often a bullish sign.

ADA Santiment: MVRV, social dominance, social volume

Also, stablecoin deposits have increased, with the market capitalization of Tether (USDT) recording a significant climb. This points to new capital inflow as investors look to buy more ADA.

ADA Santiment: Active stablecoin deposits, USDT market capitalization

The daily active addresses have also increased for ADA, indicating more and more unique addresses continue to transact in Cardano. With this soaring crowd interaction for ADA, investors continue to speculate, with the number of whale transactions moving more than $1 million worth of ADA also increasing.

ADA Santiment: Whale transaction count, daily active addresses

On the flipside, if seller momentum overpowers the bulls, Cardano price could lose the support at $0.34. If the slump gets worse, the price might even break below $0.30. A decisive candlestick close below this level would invalidate the bullish thesis.

The Relative Strength Index (RSI) is above the 70 level, showing ADA is massively overbought. Its orientation to the south shows momentum is falling, and this could provide a signal to sell ADA once it crosses below the signal line (yellow band). Traders heeding this call would spell doom for the cryptocurrency, with Cardano price likely to extrapolate the losses back into the fold of the descending trendline at $0.25, or worse, to test the $0.24 support floor. Such a move would constitute a 30% fall from current levels.