• Cardano (ADA) Wallet adoption surpasses 5.5 million, reflecting rising global use in staking, dApps, and smart contracts.
• RSI at 60.41 and MACD turning positive, showing bullish strength without overbought conditions.
• Price reclaims the $0.91 20-week SMA, with the next resistance at $1.00 and breakout potential toward $1.20.

Cardano (ADA) is gaining traction throughout the altcoin sphere and is eyeing a surge in its value against the overall market. Its price over the last 24 hours is up by 1.33%, and over the last week it is also up by 18.64%.

At the time of writing, ADA is trading at $0.9594 with a 24-hour trading volume of $3.25 billion, up by 37.85% over the last 24 hours. The coin has a market capitalization of $34.18 billion, which is also up by 1.3%.

The general market trend has turned bearish as major crypto coins like Bitcoin and Ethereum are seeing pullbacks after reaching their peak. The overall market is affected by this decline, but ADA is still expecting a bullish reversal ahead.

ADA Wallet Growth Sparks Bullish Outlook

Cardano achieved a major milestone, passing the 5.5 million wallets barrier, according to @ada_stat. Such expansion signals growing world adoption and increased penetration across the ecosystem, from staking to decentralized applications (dApps) and smart contracts.

Each new wallet makes the commitment to Cardano’s expanding user base, validators, and developers, adding to the long-term strength of the network.

The rally has also fueled speculation that ADA is set to break out. Historically, the explosive wallet growth has been followed by positive momentum, as an increase in adoption points to a promising outlook for fundamentals. Ongoing improvements toward scalability and interaction make Cardano one of the most solid, community-driven projects in the crypto sphere.

Also Read: Cardano (ADA) Whales Buy 200 Million ADA Eyeing Potential $3 Price Surge

ADA Poised for $1.20 as Technical Indicators Turn Bullish

Cardano also presents strong bull momentum as the technical indicators favor the upward direction. The Relative Strength Index (RSI) stands at 60.41, indicating strength but no overbought conditions. In addition, the MACD is positive, with the blue signal line at 0.02848 moving faster than the orange line at 0.02526, indicating increasing upward momentum.

From the price action standpoint, Cardano has surpassed its major support level around $0.70 and regained the 20-week SMA of $0.91, maintaining positive control. The next major resistance level is at the $1.00 psychological level, with a second breakout opening the possibility towards the pivotal resistance of $1.20.

If this level is overcome, ADA may clear the path towards a more substantial rally towards mid-2022 highs.

ADA On-Chain Metrics Hint at Potential Price Upside

On-chain metrics show mixed signals, as trading volume declined 23.83% to $7.62 billion, hinting at short-term caution. However, open interest rose by 2.31% to $1.84 billion, showing that traders are actively positioning for a bullish trend.

The OI-weighted funding rate remains slightly positive at 0.0093%, reflecting sustained optimism among leveraged traders. This suggests that despite weaker spot volume, market participants expect a further upside move.

Also Read: ADA Soars 17.54%: Can It Reach $2.90 in the Near Future?