Cardano (ADA) bulls continue to defend the $0.30 price support level amid the flat momentum in the broader altcoin market. On-chain data suggests that holders are consolidating their position rather than placing large bets. What next for ADA price in the coming weeks?
Cardano (ADA) price entered double-digit gains to reclaim $0.35 after Ripple’s much-heralded victory against the SEC. A closer look under the hood shows that ADA transaction volumes have soared to new heights over the last 3 months.
As the regulatory concerns surrounding Cardano are now easing up, top crypto exchanges Coinbase and Kraken have announced plans to relist ADA. Will it propel ADA price to new heights in H2 2023?
Cardano Transaction Volume Hits a 3-Month Peak
Despite the turbulent price action and widespread regulatory FUD in recent months, Cardano, quite remarkably, has maintained steady growth in transactional activity.
On-chain data rendered by Santiment reveals that it reached a 3-month Transaction Volume peak of 12.16 billion ADA on July 20.
This is 19% and 30% higher than the previous monthly peaks of 10.61 billion and 9.77 billion ADA recorded in May and June 2023, respectively.
Transaction Volume measures the real-time changes in the level of economic activity that users carry out on a blockchain network. When it rises, it signifies a growing demand for the underlying native cryptocurrency on the next work.
ADA could build stronger momentum for the next bullish altcoin season if it continues to rise.
Whales are Consolidating Their Positions Ahead of the Next Rally
Furthermore, while ADA has not delivered sizeable gains in the past week, whale investors have continued to HODL firm. Santiment reports that crypto whales banking 10 million to 100 million ADA have held their balances relatively constant since June 20.
The chart below emphasizes that they held their balances at 12.21 billion coins between July 20 and July 24.
Whales Wallet Balances tracks the trading activity of large institutional investors and high-net-worth holders within a blockchain ecosystem. The whale’s HODL firm, as seen above, reflects their neutral disposition as they await future changes in market conditions.
With the upcoming launch of the Hydra Pay product and potential re-listing by several top exchanges, Cardano Transaction Volumes could hit new peaks in the coming months.
Hence, it is only a matter of time before bullish whale investors break out of their current consolidation mode and start taking Long positions on ADA again.
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ADA Price Prediction: $0.35 Looks More Likely than $0.25
Recent price actions and whales’ trading activity shows that short-term market sentiment surrounding Cardan is largely neutral.
However, critical on-chain signals like transaction volume growth, upcoming exchange re-listings, and product launches also flash mid to long-term bullish signals.
Hence, ADA looks more likely to hold the $0.30 support level and push for the $0.35 price target.
However, strategic bulls will be wary of the $0.33 resistance level. As shown below, 196,000 investors had bought 1.61 billion ADA coins at an average price of $0.33. ADA could enter a mid-retracement if they chose to exit their positions when they break even.
But if the Cardano Transaction Volume growth fuels the bullish momentum as predicted, ADA could reclaim the $0.35 target.
Although unlikely, the bears stand a slim chance of negating the bullish narrative if ADA slips below $0.25. However, the $0.29 support level currently appears quite formidable.
As shown above, 64,000 investors had bought 2.1 billion ADA coins at an average price of $0.29. They could show bullish support to avoid slipping into a net-loss position.
Nevertheless, if that support level fails to hold, ADA could drop toward $0.25
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