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Cardano (ADA) may experience a significant price breakout if the technical indicators it is currently flashing hold on the market. After managing overall growth of 4.43% in the last seven days, Cardano appears set for a huge breakout move, as indicated by its Bollinger Bands.
Bollinger Bands' volume surge hints at possible breakout
Notably, the technical chart shows that Cardano’s Bollinger Bands are beginning to converge, a classic case of squeeze mode. This development signals that volatility is decreasing for the asset, and a shift in decisive price movement is on the horizon.
According to the Bollinger Bands, the upper band is currently at $0.6055, while the middle band hovers at an average price of $0.5733. The lower Bollinger Band, currently at $0.5411, has the potential to rise to $0.5843. Overall, the narrowing of the bands indicates that Cardano has the potential to initiate steady growth from this point.
On the cryptocurrency market, Cardano is currently trading at $0.5851, representing a 0.33% increase over the last 24 hours. ADA had climbed to a peak of $0.5888 in earlier trading sessions but faced rejection as it inched closer to $0.60.
Notwithstanding, Cardano investors are active and have pushed volume up by 22.5% to $634.64 million. If the ecosystem sustains the current momentum, the price may experience a boost, given the Bollinger Band setup.
Recently, the trading volume reached approximately $1.15 billion in 24 hours, surging by 75%. A repeat of such active engagement could support a breakout above the $0.60 level and towards the elusive $1 mark.
Can Cardano Hit $1 Again?
Other bullish indicators that could support an upward journey for Cardano’s price include its recent milestone achievement in terms of transactions. As U.Today reported, the network has hit 111 million transactions, signaling an increase in user activity.
With growing engagement, Cardano can handle and process transactions seamlessly, without severe performance challenges such as congestion. This could encourage more adoption and drive prices up.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team