Cardano (ADA) recently achieved a new yearly high after experiencing a remarkable surge of over 150% in 2023, tapping a yearly high of $0.67 for the second time last month.
Notably, this surge aligns with significant growth in key components of Cardano’s ecosystem, with the top Decentralized Exchange (DEX) Minswap experiencing an astonishing 26,000% increase and attracting a substantial number of new users. Similarly, JPG Store, the leading Non-Fungible Token (NFT) trading platform on Cardano, observed a noteworthy rise of 16,540 new addresses during the same period.
Despite facing regulatory hurdles, such as being labelled a security by the US SEC, Cardano’s appeal persists due to sustained developmental efforts. However, as cryptocurrencies globally take a breather after an energetic quarter, questions about whether ADA can surpass the $0.67 resistance have arisen.
According to crypto analyst LuckSide, Cardano is at a critical juncture, with a resistance zone identified between $0.60 and $0.67. The pundit presented two potential scenarios for Cardano in a recent YouTube video. The first anticipates an upward surge into the $0.70 range, a level not seen in about 17 months. The second scenario envisions a potential crash to $0.40. The pundit’s analysis, however, leaned towards a positive outlook for 2024, highlighting what he called a “convergence of several things”, including the recent price test of the 20-day moving average, which is still ascending.
Elsewhere, renowned analyst Dan Gambriello recently delved into the intricacies of Cardano’s market dynamics, using it as a representative case for altcoins. In a Friday analysis, however, Gambriello underscored Cardano’s dependency on Bitcoin breaking its bullish market door to make any significant move. In an earlier analysis during the week, he highlighted ADA’s breakout attempt from a crucial symmetrical triangle, a development eagerly waited for weeks. Gambriello detailed this breakout, projecting a target of $0.80.
The analyst, however, pointed out the formidable obstacle presented by the 200-week moving average just above the current ADA position. According to him, the dual nature of this resistance serves both as a cautionary signal and, conversely, as a confirming indicator. He elaborated that if Cardano manages to reach $0.80 and surges through this substantial barrier, closing a weekly candle above the 200-week moving average would constitute a macro indicator of monumental importance for ADA.
That said, having overcome significant challenges, the prospect of ADA retesting the $1 price level in the coming weeks or months seems plausible. Currently, the eighth-largest cryptocurrency by market capitalization trades at $0.60, reflecting a 1.8% increase in the last 24 hours.