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Cardano (ADA) is gaining momentum and could potentially reach new highs, according to analysts. The cryptocurrency has several factors working in its favor, including increasing staking and the potential to break the $0.4 resistance level. On-chain metrics, such as market value to realized value and network realized profits/loss, are also indicating a bullish trend for Cardano.The overall crypto market has been experiencing an uptrend for months, with many tokens seeing significant gains. However, as the market slows down, it becomes crucial to invest in cryptocurrencies that can sustain their gains in the long term. Analysts believe that Cardano is one of the best investments in this regard.Currently, ADA is trading at $0.3919, with marginal gains in the past day. Over the past week, it has recorded a 4.4% increase, and over the past 30 days, it has seen a significant uptrend of 41%. The key price level to watch for Cardano is $0.4, and analysts suggest that it could break this resistance if Bitcoin (BTC) continues to show strength.One YouTube analyst, LuckSide Crypto, believes that if BTC maintains its momentum, ADA could make a move towards 40 cents. However, Cardano has struggled with this price range throughout the year, repeatedly getting rejected. LuckSide Crypto suggests that ADA will only break this resistance if BTC shows sustained momentum and reaches a new yearly high.The analyst also predicts that BTC will finish the year above $40,000 and will continue to trend higher in 2024. As the halving approaches, BTC is expected to skyrocket, as suppressed assets are poised to explode.On-chain data further supports the positive outlook for Cardano. Santiment, a blockchain analytics firm, reports a sharp rise in net realized losses for wallets that bought ADA in the past month. Typically, such losses are followed by a bull market. The market value to realized value (MVRV) metric is also bullish, with a majority of addresses selling ADA at current prices doing so at a loss. This suggests that traders are holding onto their tokens, anticipating future appreciation.In addition, the Cardano Foundation’s commitment to stake over 11 million ADA tokens demonstrates continued investment in the token’s future. Cardano is currently the third-most staked cryptocurrency in the market, behind Ethereum and Solana. Investors have staked close to 23 billion ADA tokens, worth $8.51 billion.Overall, Cardano shows promising signs for the future, with analysts and on-chain data indicating a bullish trend. As the crypto market evolves, it is important for investors to consider cryptocurrencies that have the potential to sustain their gains in the long term.