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Cardano (ADA), currently positioned as the 9th largest cryptocurrency by market capitalization, is facing a downward trend due to the prevailing bearish sentiment in the crypto market. Bitcoin (BTC), the market leader, has led the way for price corrections in major cryptocurrencies.

Despite ADA's recent drop of nearly 20% over the past week after reaching a 22-month high of $0.810 on March 14, signs indicate that a potential reversal is imminent. This shift in momentum could potentially see ADA reclaiming the $1 mark, which ADA has not reached since April 2022.

Bullish Momentum Building for ADA

Cryptocurrency analyst "Trend Rider," who shares insights on the social media platform X (formerly Twitter), highlighted ADA's market shift from a bearish trend to a bullish trend. An examination of the two-week chart shows a realignment of key moving averages, signaling a transition to a bullish framework as indicators shift from red to green.

According to the analyst, this trend is similar to a previous event observed just before the start of a significant uptrend in ADA.

If history repeats itself and reflects the bullish run of April 2021, which saw ADA surge from $0.133 to its current all-time high (ATH) of $3.168 in less than a year, posting gains of over 2,000%, a similar trend could occur slightly above the $1 mark.

If another 2,000% price increase occurs, the Cardano token could reach $12.6, representing a significant quadrupling of its all-time high.

As the market correction continues, Trend Rider has identified key support levels that must be maintained to sustain the bullish structure. According to the analyst, trend support for ADA is expected between $0.45 and $0.52.

Key Indicators for Cardano on the Rise Cardano has made significant strides in key indicators, as reflected in data from Token Terminal. The figures reflect a significant increase in market capitalization, trading volume, and fees, underscoring the adoption of the Cardano blockchain ecosystem.

According to Token Terminal data, Cardano's fully diluted market capitalization is approximately $29.80 billion, representing strong growth over the past 30 days. This number represents the total value of all ADA tokens, including those not yet in circulation.

Furthermore, circulating market capitalization, which only accounts for tokens currently available for trading, has also experienced a notable increase, reaching approximately $23.35 billion.

Additionally, Cardano has seen a significant increase in trading volume over the past 30 days. Trading volume has surged to approximately $27.96 billion, marking a 117.5% increase. This uptick indicates increased market activity and growing demand for ADA tokens.

Another notable aspect revealed by Token Terminal data is the significant growth in fees generated on the Cardano network. Over the past 30 days, fees totaled approximately $506,700, representing a substantial increase of 36.5%.

On an annualized basis, fees generated by the Cardano blockchain reach an estimated value of $6.16 million, indicating significant growth at a rate of 5.2%. This indicates the increasing use of the Cardano network for various transactions and applications.