Cardano has extended its September rally towards $0.26, leaving ADA within reach of a Fibonacci target near $0.30 after breaking above its 200-day exponential moving average.
According to CoinGecko, ADA was trading near $0.25 on Sept. 23, up roughly 2% over the past 24 hours and 27.7% over seven days, while trading volume stood at roughly $879 million.
The latest gains follow Cardano’s integration with the x402 payment standard, which allows developers to build applications and AI agents that can pay for online services using ADA and Cardano native tokens.
The Cardano Foundation announced the integration on Sept. 21, with Cardano now included in the official x402 software kit.
Originally developed by Coinbase, x402 allows payment instructions to be included directly in internet requests.
Cardano’s implementation has completed an end to end transaction on the network’s preproduction environment, although commercial payments at scale have yet to be demonstrated on mainnet.
Network activity has strengthened alongside ADA’s price gains, providing signs that the latest move has coincided with increased use of the Cardano network.
According to DeFiLlama data, active Cardano addresses climbed roughly 60% in a day, from around 14,000 to more than 22,000.
In the meantime, CardanoScope recorded 33,919 transactions on Sept. 21, up 71% from the Sept. 16 weekly low of 19,844.
Active addresses reached a weekly high of 16,388, while Plutus script calls rose to 11,891.
An uptick in network activity is typically a sign that market sentiment around the network is improving, which could help support demand for ADA if activity remains elevated.
Improving conditions across the crypto market have provided another source of support for ADA.
Bitcoin climbed as much as 7.7% to $87,354 on Sept. 23, according to Coingecko, while several large-cap altcoins moved higher as demand returned across the market.
Derivatives activity helped accelerate ADA’s rally. Futures open interest reached roughly $578 million as traders increased their exposure, while shorts accounted for more than 80% of liquidated ADA positions, adding buying pressure as bearish positions were forced to close.
As ADA moved higher, forced closures of bearish positions added buying pressure to the move.
More recent figures from Coinglass showed open interest rising above $606 million, indicating that traders continued to build leveraged positions as ADA climbed.
Bearish positions accounted for $2.49 million of the $3.28 million liquidated over 24 hours, suggesting that short liquidations continued to contribute to the rally.
ADA price analysis
ADA’s daily price has climbed to roughly $0.257 after breaking through the $0.24 area that had capped previous attempts to move higher.
Trading volume has increased during the breakout, with several of the latest green daily candles accompanied by stronger volume.
Price is now above all four exponential moving averages on the daily chart.
The 20-day EMA stands at $0.2218, the 50-day EMA at $0.2083 and the 100-day EMA at $0.2051, while the 200-day EMA sits at $0.2393.
ADA/USDT 1-day price chart. Source: TradingView.
The move above the 200-day EMA is particularly relevant to the current breakout because ADA had spent months below the long term average.
Holding $0.239 to $0.24 would keep price above both the former resistance area and the 200-day EMA.
Fibonacci extensions calculated from the recent move place the 1.618 level at $0.2594, only slightly above the current price.
A daily close above $0.2594 would leave the next major extension at the 2.618 level of $0.3021, putting $0.30 within the current technical range.
Price could encounter selling between those levels, with $0.27 and the previous May highs around $0.28 to $0.29 forming intermediate areas to watch.
A move through them would leave the $0.30 to $0.302 area as the next Fibonacci target.
On the 4 hour timeframe, ADA’s Directional Movement Index shows +DI at 31.71, compared with −DI at only 3.54. See below.
ADA/USDT 4-hour price chart. Source: TradingView.
Buyers therefore remain dominant at the current price, although the gap between the two readings has become unusually large following ADA’s steep rise from below $0.20.
ADX has climbed to 59.02 on the same timeframe.
A reading above 25 normally accompanies an established directional trend, while the current reading near 59 shows that the latest move has developed considerably stronger momentum than ADA had through most of August and early September.
Failure to break $0.2594 would leave $0.24 as the first major area to watch on a pullback.
Below the 200-day EMA at $0.2393, the 20-day EMA near $0.2218 provides the next support, followed by the 50 and 100-day EMAs around $0.2083 and $0.2051.
ADA would therefore need to remain above $0.239 to preserve the current daily breakout structure, while a sustained move beyond $0.2594 would open the path towards the intermediate $0.27 to $0.29 area and the $0.3021 Fibonacci extension.
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