Cardano ADA surges past $1.20 resistance aiming for $10 target

Cardano [ADA] has been showing signs of a potential breakout, with analysts eyeing a surge toward the $10 price mark. The asset has maintained support above $0.80 and is testing the critical resistance at $1.20. If it successfully clears this barrier, a substantial rally could follow. However, achieving this ambitious target would require a significant price increase.

To assess the feasibility of such a move, on-chain data and historical trends must be considered. The current structure of Cardano’s price action suggests a historical fractal formation, mirroring past bullish cycles. The weekly chart indicates that ADA has previously experienced exponential surges once it broke past major resistance zones. If this pattern repeats, the next leg of the rally could push Cardano toward the projected $10 price range.

In the short term, ADA faces critical resistance at $1.20, a level that has acted as both support and resistance in past cycles. Beyond this, $1.50, $2.20, and $3.00 remain key psychological levels. Breaking through these could set the stage for further gains. However, ADA must maintain its position above $0.80, which currently serves as a crucial support zone. A failure to hold this level could invalidate the bullish outlook, leading to a deeper retracement.

Examining Daily Active Addresses, a significant drop has been noted in user activity. The latest on-chain data shows a sharp decline in the number of active addresses interacting with the network, suggesting reduced network engagement. Historically, an increase in active addresses has preceded major price rallies, meaning that ADA might need a surge in network participation to support its upward movement. Additionally, trading volume and liquidity are important factors to watch. The most recent volume data suggests that buying pressure remains steady, but has yet to show the explosive growth seen in previous breakouts. If volume spikes alongside a price breakout, it would signal strong market confidence.

A look at ADA’s past bull runs provides a reference point for its potential upside. During the 2021 cycle, ADA saw a 2,600% increase within a similar timeframe. If a similar pattern were to emerge, ADA would require an approximately 1,960% surge to reach the $10 target. While such a move is not unprecedented, it