Cardano Price Forecast as On-Chain Data Shows Huge Whale Activity – What Do They Know?

Cardano Price Forecast as On-Chain Data Shows Huge Whale Activity – What Do They Know?


Cardano (ADA). Source: Adobe

Cardano (ADA), the cryptocurrency that powers the smart-contract-enabled Cardano blockchain, was last changing hands around $0.34 per token, up around 4% on the day amid a broader rally in cryptocurrencies, but lifted somewhat by positive news about the Cardano development team delivering a new network upgrade.

That means ADA/USD is up around 14% versus its recent sub-$0.30 lows printed at the end of last week amid peak crypto market fears about the impact of a possible US financial crisis. But ADA is still down around 7.5% versus its recent highs near $0.37 after rejecting a test of its 200-Day Moving Average.

While that’s not a good technical sign, on-chain data is more optimistic, particularly as it reveals an uptick in the number of “whales” transacting on the Cardano blockchain. Specifically, according to a chart shared by @ali_charts, the number of ADA transactions that exceed $100,000 on the Cardano network is on the rise.

According to @ali_charts, “this trend indicates institutional investors’ and ADA whales’ increasing engagement, shedding light on their investment strategies”.

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What Do the Whales Know?

Increased whale activity on the Cardano blockchain could be connected to improving trends within Cardano’s Decentralized Finance (DeFi) ecosystem. Widely followed Cardano influencer @cardano_whale recent shared positive statistics relating to growth in Cardano’s TVL.

According to “ADA Whale”, Trade Value Locked (TVL) – i.e. the USD-denominated value of crypto locked in smart contracts on the Cardano blockchain – is rising 20% per month. If that rate continues and ADA recovers back to all-time price highs by the end of the year, Cardano could have a TVL of roughly $3 billion.

“This doesn’t factor in yet to launch @axotrade, @GeniusyieldO, @TeddySwap, @yamfore, @SpectrumLabs_, new @liqwidfinance assets,” the pseudonymous Twitter account noted. Cardano “is going to be a top 5 DeFi ecosystem next bull run with a massive community behind it,” they stated.

Price Prediction – Where Next for ADA?

Support-turned-resistance in the $0.35 area, which also coincides roughly with the 200-Day Moving Average may continue to cap ADA upside in the near future, with the cryptocurrency still seemingly in a downtrend from its February highs in the $0.42 area. But as buying pressure builds up in the broader cryptocurrency market and the likes of Bitcoin and Ether hit new multi-month highs, it seems like only a matter of time until ADA starts also pushing substantially higher.

A break above the aforementioned resistance area around $0.35 and the 200DMA would open the door to a retest of a downtrend linking highs going all the way back to last June. A break above here and the annual highs would then open the door to the potential upside towards last summer’s highs in the $0.60 area, more than 70% up from current levels.



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