In a recent X post shared by crypto analyst Ali Martinez, anticipation for an early Cardano breakout is stirring within the cryptocurrency community. Martinez suggests that if historical patterns repeat themselves, Cardano’s native token ADA could surge to $0.80, retrace to $0.60, and then embark on a bullish trajectory towards $8 by January 2025.
According to the previous insight shared on February 11th, Martinez has outlined an area of substantial resistance for ADA between the price levels of $0.54 and $0.56, wherein around 50,000 addresses are holding nearly 2 billion ADA. Breaking through this key area of resistance could pave the way for a bullish ascent towards $0.68.
Currently, ADA has succeeded in breaking the resistance to the upside, as the price now lies at $0.595914. The token has a 24-hour trading volume of $1.37 billion, with a market capitalization of $20.15 billion, and the ADA price reflects a 2.36% increase in the last 24 hours.
Cardano (ADA) Impressive Q4 Surge
Recent data, sourced from a Messari report, throws light on the significant growth of Cardano as compared to the overall cryptocurrency market. In the fourth quarter (Q4), ADA surged an exceptional 127.2% compared to the market, up just 53.8%. The change year-over-year (YoY) for ADA is astonishing, standing at 145.2%. This incredible surge of ADA year over year can be attributed to many purposes, such as settlement of network fees, staking, and participation in-network consensus.
However, with the significant price hike, the ADA revenues in USD have surged up to 66.7% quarter-over-quarter (QoQ), while the ADA revenues have also grown by 10.6% over the same period. The Treasury balance within Cardano has now grown to 1.43 billion ADA, showing a growth of 2.6% quarter-over-quarter, whereas the treasury is also getting 20% of the transaction fee.
Cardano network activity indicates a promise of QoQ growth of up to 10.9% in average daily transactions. Most importantly, the QoQ growth in daily active addresses has risen above 1.6%, which fundamentally points to more “power users” interacting with the network. The average fee per transaction in USD showed a 50.4% growth quarter over quarter, while there was no change on average in the ADA denomination, proving the impact of price dynamics of ADA on dynamics in fees.
Staking still counts as a key part of the Cardano ecosystem, seeing as the number of stake pools starts to plateau while delegators increase. The Cardano Foundation’s delegation strategy now broadens further to offer support to single and multi-pool operators, moving on towards an even more diversified ecosystem.
The total value locked in all protocols and decentralized finance (DeFi) projects in the broader Cardano ecosystem saw a 166% surge, quarter on quarter, while the stablecoin TVL went up 37%. Prominent developments, such as Minswap and Liqwid Finance projects, have gone on to command high activity that sums up Cardano’s increasing prominence in the DeFi space.
However, with the implementation of new stablecoins, scaling infrastructure getting introduced, and ongoing developments such as Mithril and SanchoNet everything was adding up to make Cardano a prominent blockchain platform. These advancements align with the ecosystem’s commitment to decentralization and community-driven governance, as demonstrated by initiatives like Project Catalyst.
Cardano has seen a lot of development and growth throughout the past until now in Q4, thus positioning Cardano for broadening into newer territories and innovations through the new year. As the crypto community continues to hold its breath watching Cardano, the possibilities for a bullish breakout are quite high given a combination of technical developments, engaging with the community, and market dynamics.