Cardano (ADA) has recently experienced a notable price increase of over 13%, indicating a potential shift in market dynamics. This surge is accompanied by significant on-chain activity, particularly among large holders and transaction volumes.
Whale Accumulation and Transaction Volume
Data reveals that wallets holding over $10 million in ADA have been steadily accumulating throughout the past month. Additionally, the volume of large Cardano transactions has surged by approximately 300% in the past two weeks, reaching $22.6 billion.
Technical Analysis
On the weekly chart, ADA has moved above the Ichimoku cloud, suggesting a reduction in selling pressure. However, the Directional Movement Index (DMI) indicates a bearish divergence following a bullish crossover, pointing to potential weakening of bullish momentum.
Resistance Levels and Potential for $1 Breakthrough
ADA is currently testing a resistance zone between $0.766 and $0.87. A weekly close above this range could initiate a new bullish wave, potentially propelling the price beyond the $1 mark. It’s important to note that ADA’s Total Value Locked (TVL) has reached an all-time high, reflecting increased confidence in the network’s capabilities.
Market Sentiment and Regulatory Developments
The broader market sentiment remains cautious, with participants closely monitoring regulatory developments. Cardano’s founder has become a prominent figure advocating for clear crypto regulations, which may influence investor confidence and ADA’s price trajectory.
Cardano’s recent price action and on-chain metrics suggest a potential for further gains, especially towards the $1 threshold, traders should remain vigilant. Monitoring key resistance levels and broader market trends will be crucial in assessing ADA’s future performance.
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This is no financial advice. Includes third party opinion.