Cardano’s $1.22 target: Why traders should be aware of THIS ADA setup – Crypto News – Crypto News
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Cardano's $1.22 target: Why traders should be aware of THIS ADA setup Cardano's $1.22 target: Why traders should be aware of THIS ADA setup

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Cardano’s $1.22 target: Why traders should be aware of THIS ADA setup – Crypto News

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3 days ago

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Key Takeaways

Cardano has exited a long-term downtrend with rising user activity and bullish technical momentum. Still, reclaiming and holding $0.7468 is the test—above that, $1 is back in sight.

Cardano [ADA] continued to gain traction as both liquidity and utility rose, especially over the past week. During this period, ADA gained 26% and added another 2.67% in the past 24 hours.

Market analysis showed strong potential for the bullish trend to continue. However, with resistance ahead, the question remains—can ADA push through?

Will ADA bullish breakout hold?

ADA has made a significant bullish recovery in the last 24 hours, breaching the upper boundary of a Descending Channel pattern.

This pattern, defined by downward-sloping resistance and support lines, saw ADA’s price trend lower for months, dropping from a high of $1.32 to $0.74.

Historically, a breakout above this structure signals the start of a potential rally. In this case, analysis suggested ADA may reclaim the $1 region and possibly move higher.

Source: TradingView

Still, there’s a hurdle. To sustain this breakout, ADA must overcome resistance at $0.7468, which may attract selling pressure strong enough to drag the price back down.

In fact, failure to break this level could push the asset back into the descending structure.

However, if momentum holds, the asset could climb toward the $0.95–$1.12 range, with $1.22 as an extended target, per TradingView projections.

User growth gives bulls more fuel

On-chain activity has strengthened this bullish case.

Daily Active Users (DAU) rose to 27,000, marking a fresh high since late May, according to Artemis. In fact, Transaction Count also jumped above 38,000, another multi-month peak.

ADA daily active user chart.

Source: Artemis

These increases signal growing utility, suggesting more users are actively transacting with ADA. This uptick in usage strengthens the case for continued price growth.

Technical indicators also support this bullish narrative, confirming an uptrend and liquidity in the market.

Liquidity flow confirms the trend

Backing this move further, the Average Directional Index (ADX) has hit 27.64.

This signals that a strong directional trend is forming. Historically, ADX above 25 confirms reliable momentum.

ADA technical indicator chart.

Source: TradingView

On top of that, the Money Flow Index (MFI) was at 73.64. This placed ADA in the upper range of the 50–80 zone, typically associated with strong capital inflows.

Combined, the two indicators pointed to increasing buyer conviction and liquidity.

Next: Solana prepares for a launch to $185: Can it happen?

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