By Chris Hollingworth 
Cardano’s (ADA) price has shown resilience in March, rebounding by 13.5% following a 32% decline in February. Despite being down 15% in the first quarter of the year, technical indicators suggest a potential continuation of the recent positive price momentum.
Over the past 10 days, ADA has traded within a range of $0.78 to $0.70, while social sentiment surrounding the altcoin has reached a new year-to-date high. According to Santiment, a platform for on-chain intelligence, Cardano’s social sentiment has hit a four-month high. This surge in positive sentiment was partly driven by the US Securities and Exchange Commission’s recognition of Cardano’s use case in providing smart contracts for government services.
Increased social sentiment is often associated with heightened trading activity and, sometimes, higher prices. However, despite the positive sentiment, on-chain data from Cardanoscan.io indicates a significant decrease in the number of active transactions compared to late 2024.
Michael Heinrich, CEO of 0G Labs, highlighted Cardano’s community engagement as a key strength for the project. He emphasized the longevity and stability of tokens like ADA and XRP, suggesting they are less likely to experience sudden market disruptions.
Despite the subdued on-chain activity, there is optimism regarding ADA’s price performance. The altcoin has managed to stay above the 0.50 Fibonacci retracement line, indicating a technical uptrend on high-time frame charts. ADA’s immediate resistance is at $0.78, supported by the 200-day exponential moving average (200-DEMA). A breakout above this level could potentially trigger a 20% rally towards the $0.84 to $0.88 range.
However, historical data suggests that Cardano may experience prolonged sideways movement, which could limit immediate gains. Until ADA breaks decisively above $0.78, it may continue to trade within the range of $0.78 to $0.70.
This analysis provides insights into Cardano’s recent price action and social sentiment trends. It is essential for investors to conduct thorough research and analysis before making any investment decisions, as all trading activities involve inherent risks.
