Cardano Nears $1 Target Despite Selling Spikes—Is Momentum Strong Enough?
Cardano (ADA) has bounced back from its recent crash, climbing above $0.85 and edging closer to the critical $1 mark.
The recovery has come despite noticeable spikes in selling activity, as investor demand appears to be balancing out market pressure and sustaining upward momentum.
Cardano Investors’ Mild Selling
Network data shows realized profits spiking multiple times over the past few weeks. Investors have been selling ADA to secure gains, reflecting cautious sentiment in the market. Despite this, most of these selling spikes have been modest, with realized profits generally staying below the $50 million mark.
This threshold is crucial because selling above it tends to weigh heavily on price action. With most sell-offs staying under this level, ADA has managed to maintain its upward trajectory.
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Cardano Network Realized Profit/Loss. Source: Santiment Cardano’s macro performance remains tied closely to Bitcoin. The correlation between ADA and BTC currently sits at 0.78, highlighting the influence of the crypto king on ADA’s trajectory. With Bitcoin approaching the $120,000 level, a breakout above this barrier could directly fuel demand for Cardano.
However, the correlation indicator has shown a small dip recently, raising concerns about whether the decline will continue. If Cardano decouples further from Bitcoin, its reliance on BTC’s momentum for growth may weaken.
Cardano Correlation With Bitcoin. Source: TradingView ADA Price Is Aiming High
At the time of writing, Cardano trades at $0.85, marking a climb from $0.75 just one week ago. The token is now 16.8% away from the $1 level, a psychological barrier that could significantly influence market sentiment if achieved.
Breaking $1 could revive strong demand for ADA. To reach this milestone, the altcoin must first clear resistance levels at $0.88 and $0.93. Sustaining current bullish momentum will be key for ADA to build the strength necessary to breach these barriers and close in on $1.
Cardano Price Analysis. Source: TradingView If momentum fades, Cardano risks losing ground. A breakdown below $0.83 support could push ADA back to $0.80 or even $0.75. Such a decline would invalidate the bullish thesis and raise doubts over the token’s ability to sustain its recent recovery.
