Cardano Price Analysis: Is Cardano Set for a Major Comeback? Yes, Key Breakout and Positive On-Chain Metrics Points to a $1 Rally

Cardano (ADA) appears poised for a promising rebound following a significant price correction. The ADA token, currently priced at $0.462, has witnessed a slight drop of 0.26% over the last 24 hours as of press time. With a market capitalization holding strong at $16.4 billion, placing it tenth in the crypto rankings, and a 24-hour trading volume of over $232 million, the market's dynamics suggest a growing investor interest.

After a steep 50% decline from its peak of $0.8 recorded on 14th March, ADA found a resilient support level at $0.4051 on April 13th. This support has been vigorously defended by bulls, indicating a consolidation phase above this critical price zone. A notable event occurred on May 24th within the 4-hour trading window, where ADA experienced a breakout at $0.477 key resistance level. This movement may signal the awakening of bullish forces, ready to propel the market upwards.

Should the bulls continue to defend the current support level, ADA's price could rally to $0.5, bridge the significant fair value gap above this level, and possibly ascend to surpass its recent high of $0.8, aiming for a new high at $1.00. The market sentiment, heavily leaning towards the bulls, underpins this optimistic outlook.

From a technical standpoint in the chart above, Cardano's market activity indicates strong bullish sentiment. The Moving Average Convergence Divergence (MACD) is currently showcasing bullish signals with the MACD line positioned above the signal line, which is a traditional indicator of upward momentum.

Cardano’s on-chain metrics further support the bullish thesis. According to data from Santiment, there has been a sharp increase in active addresses, surging to over 40,000 on May 21st from just 22,000 on May 12th. This uptick suggests a rising demand for ADA as more users engage with the token.

Moreover, the activity of large-wallet investors—those executing transactions exceeding $100,000—has also seen a notable increase, particularly since May 16th. This trend implies that 'whales' are actively accumulating ADA tokens, possibly in anticipation of future price increases. Such movements are pivotal as they can provide insights into potential future price dynamics.

The ADA Long/Short Ratio Chart has also shown significant improvement recently, indicating a prevailing bullish sentiment among traders. A higher long/short ratio reflects a stronger inclination towards buying and holding the asset rather than selling it, which can be a precursor to a price rally.

Overall, the technical and on-chain data for Cardano paint a promising picture for its near-term price trajectory. As bulls gear up to defend crucial support levels and possibly push the price beyond previous highs, the ADA market is brimming with optimistic energy, likely inviting more investors to partake in its potential ascent.

Ali Martinez, a renowned crypto analyst, wrote on his X page that we should be positioning ourselves for what's coming, understanding that the recent price correction might just be one of the last buy-the-dip opportunities $ADA will give us.