As a seasoned researcher who has navigated the crypto market for years, I can say that the upcoming CPI data release is a crucial event for Cardano and the entire crypto market. With my finger always on the pulse of the latest developments, I’ve witnessed the market’s reactions to such economic indicators numerous times before. If the CPI comes in as expected, we might just see Bitcoin breach the $62,000 mark, pulling Cardano up with it.
Cardano price increased over the past day as the upgrade nears completion. Speculation abounded in the crypto space after rumors of a potential meeting between Elon Musk and the Cardano founder went viral. The price of Cardano shows a bullish tendency but needs an increase in volume for the inbound rally. Will the US CPI data provide the required volatility?
Cardano Price Eyes Upcoming Inflation Data
In just under five hours, the U.S. Bureau of Labor Statistics plans on publishing the most recent figures for the Consumer Price Index (CPI).
The U.S. inflation rate, represented by this economic indicator, significantly influences Bitcoin‘s temporary price fluctuations. This could potentially prompt a response from the leading cryptocurrency.
The anticipated Consumer Price Index (CPI) for this year over last year (YoY) is projected to be 3%, aligning with the levels seen in June. On a monthly basis, there’s a predicted increase of inflation by 0.2%, which is slightly more than the 0.1% rise observed in June.
In anticipation of the upcoming Consumer Price Index (CPI) report, the value of Cardano has climbed by 2.1% over the past day, currently trading at $0.3402. If the CPI data aligns with expectations, Bitcoin could surge beyond $62,000, potentially lifting other cryptocurrencies along with it. This scenario might provide Cardano with the necessary trading volume to continue its upward trend.
Cardano Network Growing, But Whales Leaving
Data collected on-chain indicates that the Cardano network is experiencing growth. In the past day alone, the number of daily active addresses (those making transactions within the last 24 hours) has risen from 23,510 to 25,510, representing an 8.5% increase. This surge could indicate that new investors are entering the Cardano ecosystem, a potential sign of a positive trend for Cardano’s price.
As an analyst, I observed a growth in the New Adoption Rate (NAR) on Cardano. Specifically, this rate increased from 24.94% to 26.05%, suggesting that approximately 26% of all daily transactions were made by new users on the network. This indicates a rise in on-chain activity driven by newcomers on the Cardano blockchain.
On the flip side, it appears that larger players, often referred to as “whales,” are departing from the network, while new members are joining. Based on data from IntoTheBlock, whale activity has significantly decreased by approximately 99.77% over the past week, suggesting a decline in their enthusiasm for engaging with the network.
Additionally, it appears that significant investors (whales) are selling their Cardano tokens. The outflow of these large holders’ assets turned negative between August 11 and 13, indicating a net sell-off. Over the past three days, these whales have disposed of approximately $4.32 million worth of ADA.
ADA technical analysis reveals a potential reason why whales leave the network.
ADA Price Uncertainty Chasing Away Whales?
As a crypto investor, I’ve noticed that the price of Cardano (ADA) has been on a downward trend lately. This could be because the current price is beneath both the 50-day and 200-day Exponential Moving Averages (EMA).
At $0.3432, $0.3600, and $0.3743, the asset encounters some resistance. On the other hand, on the lower end, the price is kept steady around $0.3200 – a level that has been tested frequently and proven to be robust.
In simpler terms, the graph of Cardano’s price demonstrates a Symmetrical Triangle structure, often signaling an imminent rise or fall. This pattern usually precedes a major shift in direction. Notably, the daily trading volume seems rather modest, which is common before a significant breakout. A surge in volume could serve as confirmation of any breakout from this triangle.
According to Coinalyze, there’s been an uptick in the number of active investments in Cardano over the past 24 hours, suggesting a generally optimistic outlook among investors. Additionally, the Chaikin Money Flow (CMF) indicator is showing a positive trend, hinting at a slightly bullish market mood.
In simpler terms, the Moving Average Convergence/Divergence (MACD) signal has indicated a potential change in trend, hinting that ADA‘s price might soon be influenced by buyers rather than sellers. At the moment, the Relative Strength Index (RSI) stands at 51, implying that the market is currently undecided and waiting for a more definitive signal to guide its direction.
If the price of ADA convincingly surpasses the boundaries of the symmetrical triangle, this could be interpreted as a sign of market vigor, potentially triggering the return of large investors (whales). As such, Cardano might witness a significant increase over $0.37, with the general trend tilting towards bullish.
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2024-08-14 15:43