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


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

Gimbal (ADA). Source: Adobe

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

This means that ADA/USD is up around 14% from its recent lows below $0.30 printed late last week amid peak crypto market fears over the impact of a possible US financial crisis. But ADA is still down about 7.5% from its recent highs near $0.37 after rejecting a test of its 200-day moving average.

Although not a good technical sign, the on-chain data is more optimistic, especially since it reveals an increase in the number of “whales” transacting on the Cardano blockchain. Specifically, according to a chart shared by @ali_charts, the number of ADA transactions exceeding $100,000 on the Cardano network is on the rise.

According to @ali_charts, “this trend indicates growing engagement from institutional investors and ADA whales, informing their investment strategies.”

What do whales know?

The increase in whale activity on the Cardano blockchain could be linked to improving trends within Cardano’s decentralized finance (DeFi) ecosystem. Widely followed, Cardano influencer @cardano_whale recently shared some positive stats regarding Cardano TVL growth.

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 increasing by 20% per month. If this rate continues and ADA returns to record high prices by the end of the year, Cardano could have a TVL of around $3 billion.

“This does not yet take into account the launch @axotrade, @GeniusyieldO, @TeddySwap, @yamfore, @SpectrumLabs_new @liqwidfinance assets,” the pseudonymous Twitter account noted. Cardano “is going to be a top 5 DeFi ecosystem in the next bull run with a huge community behind it,” they said.

Price Prediction – What’s next for ADA?

Support-turned-resistance in the $0.35 area, which also roughly coincides with the 200-day moving average, may continue to cap ADA on the upside in the near future as the cryptocurrency still appears to be in a trending down from its February highs in the $0.42 area. But as buying pressure builds in the broader cryptocurrency market and Bitcoin and Ether reach new multi-month highs, it seems only a matter of time before ADA also begins. to push considerably higher.

A break above the aforementioned resistance zone around $0.35 and the 200DMA would open the door for a retest of a downtrend connecting highs dating back to last June. A break above here and the yearly highs would then open the door for potential upside to last summer’s highs in the $0.60 area, over 70% from current levels.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.