Cardano (ADA) Price Sets Stage for Rally to $1, Key Levels to Watch

Story Highlights

• Cardano price breakout above its 50-day SMA at $0.5419 can lead to another 30% rally.
• Cardano on-chain indicators show surge in ADA whale transactions.
• Charles Hoskinson bets on Cardano for implementing effective on-chain governance.

The Cardano (ADA) price has recently shown clear signs of bottoming out and setting itself up for a rally to $1. At press time, Cardano (ADA) is trading 0.1% up at a price of $0.5364 with a market cap of $19.0 billion. If the ADA Price Gives A Daily Close Above $0.53, the Bulls will take charge for a further rally to at least $0.68.

Cardano (ADA) Price Ready For Breakout

The downtrend in Cardano (ADA) price, persisting since mid-December, has resulted in a roughly 30% decline. However, there are signs that the price may have reached a bottom as ADA approaches a significant downtrend line. If buying pressure increases, ADA could surpass this trendline and face resistance at the confluence of the 50-day Simple Moving Average (SMA) and a horizontal line at $0.5419.

Further key levels to monitor beyond this point include the $0.5908 barrier, which stands approximately 10% above current levels, and a higher resistance at $0.6412. In a highly bullish scenario, ADA could potentially climb by 30% to reach $0.6800.

Conversely, if Cardano (ADA) faces rejection from the descending trendline, the price may decline further below the trendline support, possibly testing the $0.4668 bottom, which is approximately 10% lower than current levels.

According to Santiment data, there has been a notable increase in Cardano’s volume metric, accompanied by a rise in the number of whale transactions involving movements exceeding $100,000 worth of ADA. This uptick suggests heightened activity among traders, which may positively impact the price of ADA.

Taking Charge of Decentralized Governance

Charles Hoskinson, founder of Cardano, recently addressed the most pressing challenge he believes in the blockchain industry is the complexity of achieving effective and efficient on-chain governance. He highlights that while Satoshi Nakamoto’s introduction of proof of work resolved a significant issue within the digital currency space, it doesn’t compare to the intricacies involved in decentralized governance.

Hoskinson suggests that successfully implementing on-chain governance within Cardano could be considered “the single biggest innovation in collective governance in human history, it’s worth a Nobel Prize.”

Hoskinson emphasizes the unprecedented nature of this task, stating that Cardano’s success in decentralized governance would not only mark a monumental achievement in the cryptocurrency realm but could also set the stage for a new era of collective governance on a global scale.