As the market started to get exciting with several cryptos registering green, Cardano (ADA) also stood out, showcasing notable developments
Cardano has seen a significant surge in whale activity recently, leading to speculation about its future price potential.
Market intelligence platform IntoTheBlock revealed in an X (formerly Twitter) post that Cardano whales—those holding between 100 million and 1 billion ADA—have added 11% more ADA to their holdings over the past month.
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These large investors now control 6.71% of the total ADA supply, indicating a bullish sentiment
The increase in whale holdings is often seen as a precursor to a price rally. Large-scale purchases by these investors can lead to significant price movements.
Retail investors are also showing strong interest in ADA. Data from IntoTheBlock reveals a bullish bid-ask volume imbalance and an uptick in the ‘InThe Money’ metric. This indicates that most investors are currently profiting from their ADA holdings.
Growing optimism in the Cardano ecosystem
Confidence in Cardano is growing. DeFiLlama reports an increase in Total Value Locked (TVL) on the Cardano network over the past week. Additionally, trading volume on the network has increased, suggesting that more users are actively trading ADA.
However, despite the bullish outlook, there are concerns about declining user activity on the Cardano network.
Data from Artemis shows a significant drop in daily transactions, now around 48,000 compared to 96,000 two months ago.
Daily active addresses have also decreased, recently dipping below 34,000. These trends raise questions about the network’s current usage and adoption despite the overall positive sentiment regarding ADA’s price potential.
ADA price analysis
At press time, Cardano is trading at $0.4791 with a market capitalization exceeding $17.09 billion, making it the 10th largest cryptocurrency.
However, a change might be on the horizon. World of Charts highlighted that ADA’s price recently broke above a bullish flag pattern on its 8-hour chart. This pattern suggests ADA is currently at nearly a 10% profit, with the potential to surge by 100%.
If this occurs, Cardano could reach $1 in the upcoming weeks.
Santiment’s data shows an improvement in ADA’s MVRV ratio, a bullish indicator. Trading volume has remained high, supporting the recent price surge. However, Cardano’s velocity dropped last week, indicating reduced transaction activity.
Furthermore, analysis from Coinglass suggests Cardano might see a significant liquidation near the $0.492 mark. This could lead to price corrections, but if ADA breaks above this level, it could reach $0.5 or $0.528 shortly.
The recent surge in whale activity and growing optimism within the Cardano ecosystem suggest a promising outlook for ADA. While there are some concerns about declining user activity, the overall sentiment remains positive.
Investors should watch key price levels and market indicators closely as ADA continues to navigate these dynamic market conditions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
