Cardano (ADA) has recently been the focus of growing market optimism, with technical patterns and rising network engagement signaling potential for significant price action. As of now, ADA is trading at $1.08, a modest 0.51% dip over the past 24 hours. Despite this, the token’s bullish setup has left many wondering whether it can break through the critical $1.10 resistance level and aim higher.

A Bullish Technical Setup

ADA’s recent price movement has shown signs of strength. The token broke out of a falling wedge pattern, a technical structure often associated with impending bullish moves. Now trading near the $1.10 supply zone, Cardano is facing a pivotal moment.

The supply zone between $1.08 and $1.10 represents a significant resistance area. A decisive break above this level could open the doors for ADA to rally toward $1.30. However, if ADA fails to maintain upward momentum, it could experience a pullback, potentially stabilizing around $1.00.

Adding to the optimism, ADA has consistently formed higher lows in recent trading sessions. This trend reflects growing confidence among investors and could provide the momentum needed to clear the resistance ahead.

Network Activity on the Rise

Beyond the price charts, Cardano’s underlying network activity offers a strong foundation for bullish sentiment. Over the past week, the network has witnessed impressive growth metrics:

• New wallet addresses increased by 4.79%, highlighting growing interest in the platform.
• Active wallet addresses surged by 11.99%, signaling a rise in daily user engagement.
• Zero-balance addresses grew by 12.26%, suggesting broader user participation within the ecosystem.

These metrics indicate that Cardano’s blockchain is gaining traction among users, developers, and investors. With more participants entering the network, ADA’s potential for sustainable price growth becomes even stronger.

This uptick in activity is likely tied to Cardano’s ongoing developments, including advancements in its smart contract capabilities and decentralized finance (DeFi) offerings. As adoption increases, the network’s utility and value proposition strengthen, creating a positive feedback loop for ADA’s price performance.

Market Sentiment and Positioning

Market sentiment around ADA reflects cautious optimism. According to the latest data, 53.45% of traders are holding short positions, while 46.55% are long. This slight imbalance indicates that some market participants are hedging against potential downside risks or taking profits after ADA’s recent gains.

Interestingly, this positioning could set the stage for a short squeeze. If buying pressure increases and ADA pushes past the $1.10 resistance, short sellers may be forced to cover their positions, driving the price higher.

Challenges and Opportunities

While the bullish setup is promising, ADA faces key challenges. The $1.10 resistance remains a formidable barrier, and failure to break above it could result in a period of consolidation or retracement.

On the other hand, clearing this resistance could trigger a surge in buying activity, with $1.30 emerging as the next target. The combination of technical momentum, growing network adoption, and renewed investor interest positions ADA for potential success in the near term.

What’s Next for Cardano?

Cardano’s price journey will likely depend on how it performs against the $1.10 resistance in the coming days. Traders and investors should keep a close eye on price action and network activity for signs of sustained momentum.

If ADA can capitalize on its bullish setup and clear the resistance zone, it could mark the beginning of a larger rally. However, patience and caution remain key, as market conditions can shift rapidly.

Conclusion

Cardano is at a crossroads, with its technical and fundamental indicators aligning for potential growth. The token’s rising network activity and positive sentiment provide a solid foundation, but breaking through the $1.10 resistance is critical for its next move.