Cardano (ADA) has seen a notable increase of 20.29% in its price over the past week, aligning with the broader positive trend in the cryptocurrency market. The trading volume for ADA has also experienced a significant spike, rebounding from a low of $0.335 on July 8. This surge has allowed ADA to outperform many other large market-cap cryptocurrencies, making it a standout in the current market landscape.
The primary driver behind ADA’s price surge has been attributed to large on-chain transactions that have taken place over the past seven days. The recent uptick in price for ADA began on July 8, coinciding with the announcement of important updates related to the upcoming Chang hard fork for the Cardano blockchain. This upgrade, particularly the completion of node 9.0, has been highlighted by Cardano founder Charles Hoskinson as a key milestone, signaling positive momentum for ADA.
Data from IntoTheBlock has indicated a notable increase in whale activity on the Cardano blockchain, with a 160% rise in daily transactions exceeding $100,000 from July 7 to July 12. Moreover, the “Large Holders Netflow” metric reveals a 27.53% increase in holdings by large ADA holders within the past week. This accumulation by whales has further bolstered a bullish sentiment surrounding ADA, contributing to its upward price movement.
Looking ahead, there are two potential scenarios for ADA’s performance in the coming week. If ADA manages to break above the minor resistance at $0.43, it could sustain its bullish momentum and potentially test the next resistance level at $0.515. However, a failure to surpass this resistance level could lead to a bearish scenario, with ADA retracing its recent gains. The price action of ADA over the weekend will likely be a crucial determining factor in shaping its trajectory for the upcoming week, as it navigates towards key resistance levels.
The recent surge in ADA’s price and the positive market sentiment towards Cardano can be attributed to a combination of on-chain transactions, upcoming upgrades, and increased accumulation by large holders. As ADA continues to outperform the broader market, it will be interesting to observe how it navigates key resistance levels and whether it can sustain its upward trajectory in the coming days.
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