Cardano (ADA) price declined 5% in May. On-chain data shows that the bullish investors have started June 2023 on the front foot. With transaction volumes spiking to new highs, ADA looks set to deliver a positive performance in June.
With whale investors also increasing their trading activity in recent weeks, how much could this impact ADA price?
Cardano Transaction Volume has Hit a New Peak
On June 1, 102,860 confirmed transactions were recorded on the Cardano blockchain network. This represents a 70% increase from what was recorded on May 1.
The chart below shows that the total transactions on May 31 stood at 105,000. The last time Cardano transaction activity reached these heights was in December 2022.
When the economic activity on a blockchain network increases at this rate, it signals that the underlying native coin is in demand. If Cardano can sustain this ground-breaking level of traction, ADA could gain enough bullish momentum to scale the $0.40 resistance.
Whales Are In on The Action
Layer 1 networks like Bitcoin, Litecoin, and Dogecoin have all seen triple-digit spikes in Transaction Volumes fuelled by Ordinals. These lightweight NFT and meme tokens have been heavily criticized for taking up block space while contributing minimal economic value.
But the same cannot be said of Cardano. The recent spike in ADA transactions has been driven majorly by large institutional investors.
The chart below shows that, as total transactions rose by 70% in May, Whale Transactions also increased by 200% during the same period.
The Large Transactions metric tracks the number of confirmed transactions that exceed $100,000 in value. When it rises, a bullish signal indicates that whale investors are increasing their stakes in the underlying asset.
In summary, the rising whale activity has been pivotal to the recent spikes in economic activity on the Cardano network. If the trend continues, ADA price will likely break some new ground in the coming weeks.
ADA Price Prediction: $0.50 Incoming?
IntoTheBlock’s Break-Even Price Distribution data suggests that Cardano could soon reclaim the $0.50 milestone.
However, ADA could have difficulty breaking above the initial resistance at $0.40. At that zone, 392,400 investors holding 571 billion coins could sell when they break even at $0.39 and inadvertently trigger a retracement.
Nevertheless, if the bullish momentum prevails, those holders could turn bullish and push the rally toward $0.50.
Still, the bullish Cardano price prediction could be shortlived if ADA price drops below $0.35. However, the 385,400 investors that bought 3.27 billion ADA at the average price of $0.35 could offer some support.
But failure to hold that key support level could force ADA into another downswing toward $0.30.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.