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Cardano Forecasted to Hit $1.50 by Analysts — Can ADA Sustain the Breakout Above $1?
Recently, a prominent analyst has forecast that Cardano (ADA) could potentially hit $1.50 in the near future. This bullish prediction comes on the heels of ADA’s recent breakout above key resistance levels, which is described as a “textbook” bullish setup.
The technical indicators are certainly supportive of this breakout, with the MACD displaying a positive crossover and all major exponential moving averages aligned in favor of an upward trajectory. Additionally, whale accumulation data suggests that large holders have been increasing their ADA holdings since June, likely contributing to the recent surge.
However, despite these promising signs, there is concern about the sustainability of such a rally given the lackluster on-chain activity and declining development metrics. Daily active addresses are down to 17.4K, a significant drop from the 150K+ recorded in mid-2024. Transaction volume has also plummeted, with daily volume dropping to less than 6 billion ADA.
Moreover, Cardano developer activity has hit an 18-month low, which may raise concerns about investor confidence in the long-term potential of the project. In past market cycles, ADA’s price growth was often correlated with increasing development and user engagement.
The analysts’ forecast relies heavily on speculation surrounding a potential Cardano ETF, which has garnered over 80% odds of approval according to prediction markets like Polymarket. While such momentum can fuel temporary price surges, it is notoriously difficult to sustain without fundamental support from the community and protocol developments.
While ADA’s short-term prospects appear to be favorable given its technical setup, the long-term viability of this forecast hinges on a marked improvement in these fundamental indicators.
Source: coinchapter.com
