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- Cardano’s improving social sentiment and technical indicators suggest a potential 20% price increase in the short term.
- Despite positive sentiment, on-chain activity remains weak — investors should be cautious about overestimating immediate gains.
Cardano (ADA) has recently experienced a notable resurgence, with its price climbing 13.5% in March after a 32% decline in February. Reflecting on a previous CNF update, Cardano’s price was reported to flash a 2x recovery signalahead of March.
According to Santiment, an on-chain intelligence platform, Cardano’s social sentiment has reached its highest positive measurement in four months. This uptick is partly attributed to the U.S. Securities and Exchange Commission’s (SEC)recent comments, which classified Cardano’s use case as “smart contracts for government services.
Such positive social sentiment often aligns with increased trading activity and can precede price increases. Ripple CEO Brad Garlinghouse commented:
This is it – the moment we’ve been waiting for. The SEC will drop its appeal – a resounding victory for Ripple, for crypto, every way you look at it. The future is bright. Let’s build.
Technical Indicators Point to Potential Breakout
From a technical standpoint, ADA has been trading within a range of $0.78 to $0.70 over the past ten days. Despite the recent downturn, ADA has maintained support from an ascending trendline while oscillating within a parallel channel.
The immediate resistance lies at the upper range of the channel at $0.78, supported by the 200-day exponential moving average (200-DEMA). A positive daily close above the 200-DEMA could signal a bullish shift, potentially triggering a move above $0.78.
Caution Amidst Optimism
While the surge in social sentiment and favorable technical indicators are promising, it’s essential to approach these signals with caution. Historical patterns indicate that Cardano has exhibited prolonged sideways movement, which could limit immediate gains.
Additionally, despite the positive social sentiment, on-chain activity has not mirrored this enthusiasm. Data from Cardanoscan.io shows that the average transaction count has decreased by approximately 70% compared to levels in November 2024, with transactions numbering 26,437 on March 18.
Market Analysts’ Perspectives
Cardano’s recent performance, bolstered by increased social sentiment and supportive technical indicators, suggests the potential for a 20% price increase in the near term. However, investors should remain cautious, considering the mixed on-chain activity and varying analyst predictions.
While ADA’s rival is trading at $0.20 and aiming for a bigger rally, Cardano (ADA) is currently trading at $0.7270, reflecting an increase of 2.60% in the past day and 0.74% in the past week, according to CoinMarketCap data. See ADA price chart below.
