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Cardano (ADA), the cryptocurrency that powers smart-contract-enabled cardano Blockchain, last changing hands around $0.34 per token, was up nearly 4% on the day amid a broader rally in cryptocurrencies but lifted somewhat by positive news about it. cardano The development team is offering a new network upgrade.
That means ada/USD is up nearly 14% amid fears about the impact of a possible US financial crisis on the crypto market printed at the end of last week from its recent sub-$0.30 low. But after rejecting a test of the 200-day moving average, ADA is still down about 7.5%, close to its recent high of $0.37.
While this is not a good technical sign, on-chain data is more bullish, especially as it shows an increase in the number of “whale” transactions on the Cardano blockchain. Specifically, according to a chart shared by @ali_charts, the number of ADA transactions on the Cardano network is surging past $100,000.
According to @ali_charts, “this trend indicates increased engagement by institutional investors and ADA whales, shedding light on their investment strategies”.
What do whales know?
The increased whale activity on the Cardano blockchain can be linked to improving trends within Cardano’s decentralized finance (DeFi) ecosystem. Widespread Cardano influencer @cardano_whale recently shared positive statistics regarding the increase in TVL of Cardano.
According to “ADA Whaley”, Trade Value Locked (TVL) — that is, the USD-denominated value of crypto locked in smart contracts on the Cardano blockchain — is growing 20% per month. If this rate continues and ADA returns to its all-time high price by the end of the year, Cardano could have a TVL of around $3 billion.
“It’s not yet a factor to launch @axotrade, @GeniusyieldO, @TeddySwap, @yamfor, @SpectrumLabs_New @liqwidfinance asset,” the pseudonymous Twitter account noted. Cardano “is going to be a top 5 DeFi ecosystem in the next bull market, with a huge community behind it,” he said.
Price Prediction – Where Next for ADA?
Support-resistance in the $0.35 area, which roughly coincides with the 200-day moving average, may continue to cap ADA upside in the near future, with the cryptocurrency still holding its February highs in the $0.42 area. appears to be downwards. But as buying pressure builds in the broader cryptocurrency market and the likes of bitcoin and ether soar to new multi-month highs, it seems like only a matter of time until ADA gets pushed significantly higher as well. does not start.
A break above the above resistance area around $0.35 and the 200 DMA would open the door for a retest of the downtrend connecting higher levels all the way back to last June. A break from here and the yearly high would then open the door for a potential upside move towards last summer’s high in the $0.60 area, which is more than 70% higher from current levels.