Cardano Shows Signs of Bullish Momentum as $0.671 Resistance May Pave the Way for $0.80 Target

• Cardano is positioning itself for a potential bullish breakout as investor sentiment reaches new heights amid rising network activity.

• The recent upward trend in user engagement signals stronger interest in the Cardano ecosystem, reinforcing its growth potential.

• According to data from IntoTheBlock, Cardano’s crowd sentiment score currently stands at 0.99, indicating overwhelmingly positive market sentiment.

Explore how Cardano’s increasing network activity and bullish sentiment could pave the way for a breakout above $0.671, potentially targeting $0.80.

Network participation rises: Is ADA’s activity trend reversing?

Recent on-chain data reflects a steady rebound in Cardano’s user activity. Over the last 7 days, new addresses increased by 4.79%, active addresses jumped by 11.99%, and zero-balance addresses climbed 12.26%.

This activity suggests that more users are engaging with the network, either reactivating dormant wallets or preparing for potential moves. Therefore, ADA appears to be building momentum not only through price but also through ecosystem participation.

Source: IntoTheBlock

TVL dips slightly: Is liquidity still supporting ADA?

Although user activity is increasing, Cardano’s liquidity metrics have shown a slight pullback. The Total Value Locked (TVL) in its DeFi protocols has dropped to $377.2 million, reflecting a 2.18% decline over the last 24 hours.

Similarly, the stablecoin market cap within the ecosystem sits at $30.39 million, down 1.90% over the past week. These figures suggest some caution among capital allocators.

However, the declines remain shallow, and historically, similar dips have not derailed ADA’s momentum. Therefore, the current liquidity environment does not yet challenge the broader bullish narrative.

Source: DefiLlama

Liquidation zone looms: Can ADA trigger a squeeze above $0.67?

Derivatives data indicates a large cluster of short liquidations just above the $0.67 price level. Currently, ADA trades at $0.6380, registering a 1.12% drop at press time. However, this minor pullback places the price within striking distance of the liquidation zone.

If bulls manage to push the price beyond $0.671, a wave of short covers could act as a catalyst for a rapid move higher. Therefore, this area represents a high-stakes zone where volatility could spike sharply in favor of buyers.

Source: Coinglass

Inverse head and shoulders: Will the pattern complete toward $0.80?

Cardano’s 4-hour chart reveals a clean inverse head-and-shoulders pattern, a formation that often signals the beginning of a bullish trend. The neckline rests near $0.671, a level that now acts as a psychological and technical barrier.

Additionally, the confluence of rising sentiment and derivatives pressure enhances the probability of a breakout. If ADA breaches this level convincingly, the pattern suggests an upside target close to $0.80. Therefore, this setup offers an encouraging signal for traders eyeing higher levels.

Source: TradingView

Ultimately, Cardano’s structure, sentiment, and participation metrics are all pointing in the same direction. While minor liquidity softness adds a cautious undertone, the technical and behavioral setup remains bullish.

Therefore, if ADA clears $0.671, the odds of a swift rally toward $0.80 increase significantly, especially if short liquidations are triggered.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.