Cardano (ADA) has struggled to break above the $0.30 resistance for the past week. However, on-chain data now flashes signs of an impending price breakout. Can the bullish whales force a price breakout?
Cardano bulls face an uphill battle this week as Robinhood is set to end support for the ADA on June 27. For ADA to sustain the ongoing price rally toward $0.40, the whales holding 1 million to 10 million will play a pivotal role.
Cardano Network Usage Activity is Rising
While ADA price has struggled to break the $0.30 resistance, the underlying economic activity on the network continued to rise.
The Santiment chart below shows that Cardano Daily Active Addresses have increased from 41,080 to 66,808 between June 18 and June 26. This represents a 63% rise in value-adding economic activity across the Cardano network.
Daily Active Addresses assesses a blockchain network’s daily usage activity by summing up the number of unique wallet addresses carrying out transactions.
As seen above, despite ADA prices stagnating below $0.30, the underlying economic activity on the network has continued to rise. If the ADA stakeholders maintain this level of traction, Cardano’s price will likely break out toward $0.40 again.
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ADA Whales Looking to Force a Breakout
Furthermore, the bullish trading activity among Cardano whales also offers another silver lining for ADA holders. After a brief sell-off, on-chain data shows that the whales holding balances of 1 million to 10 million ADA have made significant fresh purchases.
Between June 22 and June 26, they added another 30 million ADA worth approximately $10 million.
As seen above, the whale accumulation has already triggered a marginal ADA price surge. Due to their financial power, crypto whales wield significant influence in any blockchain ecosystem.
When large institutional holders make significant purchases, it often indicates that they have confidence in the projects’ long-term viability.
This positive perception will likely attract more participants and further bolster Cardano’s economic activity in the coming weeks. If things go according to plan, the ADA price could soon break out toward $0.40.
ADA Price: Possible Breakout Toward $0.40
Considering that the Robinhood delisting was announced weeks ago, the market appears to have already priced it in. Hence, ADA price will likely break out as investors move their business to other larger exchanges that still support Cardano.
The Global In/Out of The Money (GIOM) chart below shows that after scaling $0.30, Cardano will face lesser obstacles until it reaches $0.40.
However, ADA must first clear the initial $0.30 resistance. 121,760 addresses bought 2.49 billion coins at a maximum of $0.30. They could trigger a major pullback if they look to exit at their break-even price.
However, if the bullish momentum is strong, they could double down on their positions and push ADA toward the $0.40 price target.
Still, the bears could, again, seize control if ADA price slips below $0.25. Although, 439,220 investors that bought 6.12 billion ADA at a maximum price of $0.28 could offer formidable support.
If that supports caves, Cardano may decline further toward $0.20.
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Disclaimer
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