Cardano (ADA) has seen a surge in on-chain activity in recent days, which has seen the price surge to $0.32, with bulls keen to push it past the $0.35 mark.
ADA started a fresh increase above the $0.30 resistance and is currently outperforming Bitcoin as it looks to push toward the $0.35 resistance.
Cardano (ADA) Price Surges
The Cardano price registered a staggering increase late on the 2nd of November, as it shot up from $0.30 to almost $0.33 in hours. The surge represented a 5% increase from the previous day and a 30% rise in the past week. Transaction activity on Cardano has also registered a 32% increase in three weeks. This suggests considerable interest from large-scale holders. ADA address activity has also seen a 23% jump in the same period.
“#Cardano has been the big story Thursday, with its market cap growing +9% in the past 24 hours and now +36% over 2 weeks. As usual, #onchain activity hinted at this #bullish action with $ADA address activity & whale transaction at their highest in 3+ months.”
Cardano’s impressive performance in recent weeks has seen analysts make bold predictions about the price of ADA. One user on X predicted that ADA could surge to $30 in the near future. The user argued that global inflation could act as a catalyst for the crypto market and push its market capitalization, with ADA leading the rally. Others predicted a more grounded price increase, with one analyst predicting a 43% price increase based on the surge in transaction volume.
Wallet And Transaction Insights
On-chain data shows that 61% of ADA holders have been holding their assets for over a year. This suggests that ADA has a strong long-term investor base. Additionally, the percentage of large investors in Cardano currently stands at 29%. However, a majority of wallets are at a loss at current prices. However, significant transactions worth over $22 billion have been done in the past week in terms of trading volume. Despite this, the number of whale-level wallet addresses is low, with just 3. However, inflows and outflows among large ADA investors are significant.
Potential Catalysts
Cardano’s performance in the market has mirrored its on-chain data. The ongoing Cardano Summit, a gathering of blockchain enthusiasts and developers, is being viewed by the Cardano community as a potential bullish catalyst. The Community is hopeful the summit can drive positive sentiment, which could be reflected in ADA’s price. Another potential catalyst is the expected approval of a spot bitcoin exchange-traded fund, which could act as a bullish catalyst for the entire crypto space.
Cardano (ADA) Price Analysis
Cardano (ADA) is currently trading at $0.31 and is looking to push beyond the $0.32 level. ADA was able to mount a significant rally, pushing beyond $0.30 and moving further into a positive zone. The price is up by over 10% in two days, which has seen ADA outperform Bitcoin (BTC) and Ethereum (ETH). There is a multi-week high forming near the $0.3295 level, and ADA will look to consolidate gains. ADA did experience a minor correction below the 23.6% Fib retracement level of the upward move from the $0.2847 swing low to the $0.3295 high.
ADA currently sits above the 100 Simple Moving Average (4 hours). There is also a bullish trend that has formed at $0.30 on the four-hour chart of the ADA/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $0.2847 swing low to the $0.3295 high.
ADA faces resistance at several levels. The first key resistance is near the $0.332 level, with the next resistance persisting at the 0.350 level. If ADA extends and closes above the 0.350 resistance, we could see the price extend its rally. However, if ADA fails to move above $0.328, it could move towards its support level of $0.310. The next major support level is at $0.308 and the trend line. A move below these levels could see ADA decline toward the $0.285 level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
