Cardano (ADA) recently saw its price rise by approximately 5%, reaching $0.35. Despite this increase, it remains in 11th place in terms of market capitalization. On-chain analysis suggests that for ADA to reclaim its previous top 10 position, surpassing TRX, it needs to break the $0.38 resistance level.
An important indicator, the In/Out of Money Around Price (IOMAP), shows the key resistance levels for ADA. Concentrated addresses at certain price levels act as strong support or resistance. As of now, 155,800 addresses hold 2.24 billion tokens at $0.38, worth around $850 million.
The Network Value to Transaction (NVT) ratio indicates that ADA may be overvalued, suggesting that its market cap is outpacing transaction volume. This could mean the current price is unsustainable. However, an upcoming network upgrade, the Chang hard fork, aimed at advancing decentralization, could potentially drive a rally for ADA.
From a technical standpoint, ADA is trading within a symmetrical triangle pattern. The next price movement depends on other indicators like the Cumulative Volume Delta (CVD) and the Moving Average Convergence Divergence (MACD), both showing positive signs.
In a bullish scenario, ADA’s price could reach $0.39, helping Cardano regain a top 10 market cap position. Conversely, rejection at $0.36 could bring the price back to $0.33.
