As an analyst with over two decades of experience in the cryptocurrency market, I’ve seen my fair share of price surges and dips. The recent surge in Cardano (ADA) has caught my attention due to its impressive performance in terms of active addresses and large holder netflow.
Currently, the value of Cardano is escalating as it aims to regain the 11th position in the cryptocurrency market, surpassing Justin Sun’s Tron Network (TRON). According to Sun, with his new strategy, TRON could potentially generate $4 billion in revenue. The optimism among ADA investors has significantly increased, pushing the price up by 8.1% over the past 24 hours to reach $0.3719. On-chain analysis indicates a rise in active addresses on the network, often an early sign of a price hike. Furthermore, there’s a growing bullish sentiment among traders, with more investors buying the asset. However, Cardano must overcome a significant resistance zone before making its next upward move. The success at this crucial juncture will determine its future trajectory.
Spike in Active Addresses Reflect Cardano Price Surge
The data from Santiment indicates a rise in active addresses since it dipped to its yearly minimum on August 18, 2024. This same date coincides with the conclusion of the RareEvo blockchain event where Cardano demonstrated its Hydra Layer 2 scaling solution, positioning it as a serious competitor within the realm of highly scalable networks.
The increase in active addresses might indicate that fresh users are trying out the network, or existing investors are capitalizing on the excitement surrounding Hydra and the approaching Chang hard fork update.
The evidence provided by IntoTheBlock Large Holder Netflow data strengthens the claim that significant Cardano holders (whales) have consistently increased their holdings since August 18.
Traders are capitalizing on the excitement surrounding Cardano to generate profits, as data from Coinglass reveals that a total of approximately $10 million in Short Leverage positions have been accumulated between prices ranging from 0.319 to 0.367. Conversely, there is only around $3.47 million in Long positions, and these are quickly diminishing.
Based on my years of trading experience and observing market trends, I believe there is a growing optimism among traders regarding the potential increase in Cardano’s price in the near future. This enthusiasm is reflected in their willingness to invest their hard-earned money, which speaks volumes about their confidence in this digital currency. In my view, this surge in buying activity suggests that we might witness some significant growth in the Cardano market soon.
As a researcher, I’ve found that the majority of the $10 million liquidity cluster resides approximately at $0.343. This implies that if market circumstances shift, $0.343 could serve as a robust immediate support level for Cardano.
All Ahead Flank for ADA Price After $0.3750
Cardano price defied a classic bearish continuation pattern and broke out to the upside, which suggests the beginning of an uptrend. This strong market performance suggests that ADA price is looking to regain its all-time highs.
The powerful upwards trend continues as the market experiences a significant bullish candlestick during the breakout, suggesting further growth. The magnitude of this candlestick signifies robust demand from buyers.
It’s predicted that the price of ADA may encounter resistance around $0.3703, which it’s currently approaching, and beyond that point, at approximately $0.4340, where it lines up with the top end of the Bollinger Band and a previous period of consolidation.
Furthermore, the cost of Cardano is trending towards its upper Bollinger Band, suggesting a potential overbought situation with significant market momentum. The favorable Chaikin Money Flow (CMF) figure underscores this, pointing to capital flowing into ADA.
If the positive trend persists and manages to surpass the resistance at $0.4340, it could be beneficial to hold or accumulate ADA. Should the price stay above the support at $0.3430, investors might anticipate a long-term goal of around $0.5000.
If the price of Cardano doesn’t manage to rise and stay above $0.3750, this might indicate a lack of strength in the market, potentially leading to a decrease down to $0.3067. This would contradict the current optimistic outlook for the asset.
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2024-08-22 05:42