Cardano

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In a promising turn of events,&nbsp;<a href="https://u.today/cardano-founder-denounces-xrp-communitys-harassment">Cardano's ADA</a> has ignited a bullish trend at the onset of the new week, shaking off last week's brief respite after a formidable 50.62% surge. ADA enthusiasts have reason to celebrate once more as the token flaunts a 3.8% gain, currently valued at $0.6.
Despite the recent bullish momentum, skeptics who have criticized Cardano over the past two years are left questioning the sustainability of this resurgence. However, diving into on-chain data reveals a compelling narrative that could propel ADA to new heights.
Analyzing liquidity accumulations, a crucial factor in determining price movements, data from IntoTheBlock underscores that major liquidity accumulations for ADA remain positioned below the current market levels.&nbsp;
Should Cardano aspire to breach its near-term target of $0.7 per ADA, it would only need to absorb 1.42 billion&nbsp;<a href="https://u.today/cardano-ada-shockingly-ranks-next-to-bitcoin-btc-in-this-area">ADA</a>—tokens purchased between $0.6 and $0.7, currently causing losses to holders.
<img alt="&quot;&quot;" data-entity-type="file" data-entity-uuid="6859e498-79e0-47e3-a886-063e32d0ee35" src="https://u.today/sites/default/files/inline-images/adaa.png">Source: <a href="https://app.intotheblock.com/coin/ADA/deep-dive?group=all&amp;chart=all">IntoTheBlock</a>
The key lies in understanding the dynamics of token growth and the potential impact of loss-making tokens at specific price levels. Cardano faces a critical juncture, with $855 million worth of ADA on the path to $0.7, constituting a formidable 4% of the token's market capitalization.&nbsp;
<img alt="&quot;&quot;" data-entity-type="file" data-entity-uuid="dcabccc7-857e-4f24-b8b7-d276411f815a" src="https://u.today/sites/default/files/inline-images/ADA_1M_graph_coinmarketcap%20%281%29_1.jpeg">ADA to USD by <a href="https://coinmarketcap.com/currencies/cardano/">CoinMarketCap</a>
On the other hand, this volume is dispersed between $0.6 and $0.7, mitigating the risk of concentration at a single critical point.
If&nbsp;<a href="https://u.today/cardanos-hoskinson-slams-bitcoin-beach-project">Cardano</a> successfully absorbs this volume amid favorable market conditions supporting growth, a tantalizing 15% increase above current values becomes a plausible scenario. However, a cautionary note emerges on the downside, as profit-seeking investors may decide to capitalize on gains, exerting downward pressure on the ADA price.

Cardano (ADA) Price Aims for Epic 15% Upside, But There's Barrier to Overcome

U_Today

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