• Cardano’s breakout above $1.065 highlighted bullish momentum, targeting $1.77 with growing trader interest
• Strong development activity and rising daily active addresses could bolster its long-term growth potential

Cardano [ADA] recently confirmed a breakout after retesting its key resistance levels, sparking optimism among traders. Trading at $1.07 at press time, following a slight 0.05% hike, the cryptocurrency has seen some renewed strength on the charts lately. 

This development has set the stage for ADA to potentially hit its next price target of $1.77. However, with technical indicators and market sentiment painting a mixed picture, can Cardano maintain its upward momentum and lead the crypto market to a broader rally?

How is price action signaling a bullish trend?

ADA’s price action demonstrated a clear breakout from its descending wedge pattern – A bullish signal for traders. In fact, at the time of writing, the cryptocurrency was holding above the $1.065 support level, with $1.172 acting as the next critical resistance. 

Additionally, a sustained push above $1.172 could pave the way for a rally towards $1.77 – A major milestone. However, failure to maintain support at $1.065 might result in a pullback, creating opportunities for buyers to re-enter at lower levels.

What does the sharp hike in NVT ratio indicate?

The NVT ratio for ADA surged to 40.6, reflecting an increase in its valuation compared to transaction volume. This metric often signals heightened investor interest, which can drive the price higher in the short term. 

However, such a rapid hike can also hint at overvaluation, requiring caution from traders. Therefore, keeping an eye on transaction activity will be critical for understanding the sustainability of this rally.