Cardano (ADA) has entered the spotlight after breaking out of a bullish flag pattern on the daily chart, signaling further upward potential. At press time, ADA trades at $1.12, marking a significant 7.11% surge in the past 24 hours.
The technical charts reveal more bullish patterns, including a cup-and-handle and an inverted head-and-shoulders formation. If ADA surpasses the critical $1.20 resistance level, it could aim for $1.40—a psychological milestone for traders and investors.
Is Ripple’s RLUSD Stablecoin Partnership Driving Momentum?
Speculation surrounding a potential partnership between Ripple and Cardano for the RLUSD stablecoin has added fuel to ADA’s rally. Charles Hoskinson, Cardano’s founder, recently highlighted the importance of integrating stablecoins into the network to enhance its DeFi capabilities.
Ripple’s recent market rally may also be indirectly boosting optimism for Cardano. If the partnership materializes, it could significantly strengthen Cardano’s ecosystem, attracting developers and users alike while bolstering its position in the competitive DeFi space.
I like the RLUSD team, and they are smart professionals. We met recently, and it will be fun seeing if there is a path to get RLUSD on Cardano
— Charles Hoskinson (@IOHK_Charles) January 12, 2025
Technical Indicators Suggest More Gains Ahead
ADA’s technical indicators support the bullish outlook. The RSI stands at 61.7, reflecting upward momentum without entering overbought territory. Additionally, the MACD has formed a bullish crossover, signaling growing buying pressure.
Breaking past $1.20 could lead to a rapid ascent, with $1.40 emerging as the next major target for investors.
Network Growth Bolsters Bullish Sentiment
Cardano’s on-chain activity is also on the rise. Daily active addresses surpassed 46,000 on January 16, demonstrating increased network usage and investor confidence in the platform’s long-term potential.
Market sentiment remains bullish, with open interest increasing by 16.12% to $1.48 billion. Liquidation data shows a clear short squeeze, with $559,640 in short positions liquidated compared to $178,750 in longs.
With strong technical indicators, robust network activity, and the potential Ripple partnership, ADA seems poised for continued gains. Clearing the $1.20 resistance could set the stage for Cardano to achieve the $1.40 milestone, cementing its bullish trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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