- ADA’s price was down 0.42% and was trading at $0.3637 at press time.
- The altcoin nearly lost the $0.3562 support level over the weekend, but bulls were able to defend the price point.
- A long-term wedge chart pattern was present on ADA’s daily chart, which suggested there may be a breakout soon.
Recently, there has been a noticeable rise in significant transactions occurring on the Cardano network. The volume of these transactions has surged from around 70 billion ADA to an impressive 180 billion ADA. This sudden increase of 100 billion ADA has piqued curiosity regarding the reasons behind this sudden surge in activity by large investors.
One of the main factors driving this surge could be the fundamental growth of the Cardano network itself. Over the past few months, Cardano has made substantial progress in improving its platform, creating an environment that facilitates the acceleration of large-scale transactions. Upgrades such as the Alonzo hard fork, which introduced smart contract capabilities to the network, might have encouraged the adoption of Cardano among large-scale investors, thereby influencing the spike in transactions.
Moreover, the expanding ecosystem of Cardano, characterized by a flurry of new releases and project launches, could be contributing to this surge. The development of new decentralized applications (dApps), non-fungible token (NFT) platforms, and decentralized finance (DeFi) projects on Cardano’s blockchain presents an enticing opportunity for large investors. They may be accumulating ADA in anticipation of utilizing or supporting these new projects, which could explain the sudden increase in high-volume transactions.
Another aspect to consider is that Cardano has recently emerged as a platform for meme coins. The launch of the first meme coin on the Cardano network, Hosky, sparked a rally within the meme coin community on Cardano. Given the volatile nature of meme coins, they often witness bursts of high-volume transactions, which could be contributing to the spike. Whale investors might be taking advantage of this trend by purchasing substantial amounts of ADA to invest in these new tokens.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price drop of 0.42%, taking its price down to $0.3637 at press time. The Ethereum-killer’s market cap stood at $12.681 billion as a result.
Meanwhile, ADA’s 24-hour trading volume stood at $135.789 million, following a 24-hour increase of 45.18%. Furthermore, the price of ADA was nearer to its 24-hour high of $0.3654, while the altcoin’s daily low stood at $0.3573.
The recent drop in ADA’s price pushed its weekly performance further into the red. As a result, ADA’s weekly performance stood at -2.85% at press time.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
ADA’s price had lost the support of the $0.3613 level over the weekend, and had almost lost the support of the next key price point at $0.3562 as well. Bulls entered ADA’s charts just in time, however, to defend the level over the past 24 hours.
Not only did they successfully keep ADA’s price above $0.3562, they were also able to give it a much-needed boost – allowing it to flip $0.3613 back into support earlier today. At press time, ADA’s price was trading between the 9 EMA and 20 EMA lines on its 4-hour chart, as bulls continued to fend off ADA bears.
If ADA’s price is able to close a 4-hour candle above the 9 and 20 EMA lines before the end of today’s trading session, then it will likely flip $0.3697 into support in the next 24-48 hours. On the other hand, ADA’s price dropping back below $0.3613 during today’s trading session will result in ADA’s price dropping back down to retest the $0.3562 support level.
Technical indicators on the altcoin’s 4-hour chart suggested that bulls still had the upper hand against bears, as the RSI line was steeply sloped toward the overbought territory. Furthermore, the RSI line had recently crossed bullishly above the RSI SMA line. The margin between the 9 and 20 EMA lines on the 4-hour chart was also narrowing, which was another bullish sign.
Traders and investors will want to wait for the 9 EMA line on ADA’s 4-hour chart to close above the 20 EMA line before entering a long position for crypto. Should this happen, ADA’s price will have the support needed to break above the aforementioned $0.3697 resistance level and flip it into support. This will then also clear a path for it to climb to $0.3808. A confirmation of the bearish thesis will be if ADA’s price closes a 4-hour candle below $0.3613 by the end of today’s trading session. This will signal an entry for traders looking to short ADA in the following 48 hours.
Daily chart for ADA/USDT (Source: TradingView)
A long-term wedge pattern which was present on ADA’s daily chart suggested that a breakout was on the cards for the altcoin’s price in the near future. However, ADA’s price had broken out of this wedge in the past 48 hours. Nevertheless, the chart pattern may still play out as bulls attempt to push ADA’s price back to within its range.
Investors and traders will want to watch the previously-mentioned support level at $0.3562 for the next 48 hours, as a break below this mark will be catastrophic for ADA’s price. Should this level be breached, ADA will likely drop to the next support level at $0.3263 in the following 2-3 days.
On the other hand, if bulls are able to elevate ADA’s price back within the long-term wedge pattern, as well as above the next key resistance level at $0.38, then the altcoin’s price will look to climb to $0.4092 in the following 48 hours.
Despite this, the wedge pattern may still play out and ADA’s price could still drop to $0.38. Conversely, if it experiences a bullish breakout, then it could climb to as high as $0.4953 as a result.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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