Cardano (ADA) price is down 4% as altcoin markets have slumped over the past seven days. The on-chain data shows how the recent bullish move from Cardano whales could push ADA price back above the $0.40 resistance.
Cardano lost the $0.40 support on May 1, as the news of regulators bailing out the collapse of the First Republic bank sent several top-tier coins surging. Here’s how crypto whales can force an early rebound in ADA price.
Network transaction volumes are on the rise
Compared to April, there has been a significant increase in the volume of USD-denominated transactions completed on the Cardano network.
Cross-chain data from Cardano shows how transaction volume has consistently remained above $2 billion since April 10.
Between April 10th and the end of May 3rd, there was a 42% rise in the amount of dollars spent on the Cardano network.
When the volume of transactions is constantly rising, it indicates a steady increase in the demand for basic services and products hosted on the blockchain network.
For Cardano, it becomes even more bullish given that ADA transaction volumes exceeded $2 billion just on two occasions during the first quarter of 2023. If this upside holds, ADA investors can expect an early price recovery.
Cardano whales are betting big despite the recent bounce
Despite posting a recent price correction of 4%, the Cardano whales seem unfazed. Over the last seven trading days, whales have increased their trading activity by 33%.
The graph below shows how significant daily transactions increased from $8.07 billion to $10.81 billion between April 28 and May 3.
Big Deal is a financial metric that aggregates the total volume of deals in excess of $100,000 on a given trading day. When it increases, it indicates that whale investors are increasing their bets on the underlying asset.
In conclusion, the steady rise in Cardano transaction volumes and the increase in whale activity are crucial bullish signs. If these metrics continue to rise, ADA holders can expect further price hikes in the coming days.
ADA price forecast: the $0.42 resistance might be critical
As projected from the Global In/Out The Money Around Price data below, the data-driven ADA price forecast shows a potential rally towards $0.45.
However, the bulls will have to deal first with selling pressure from 416,000 addresses holding 5.11 billion coins at an average price of $0.42.
But if the bullish outlook holds, ADA could reach a new high in 2023 at $0.51. In that area, profit-taking by a group of 466,000 investors who bought 2.47 billion coins at an average price of $0.51 could slow the rally.
Conversely, bears could control the market if ADA loses its current support at $0.37.
Although the upward group of 301,000 addresses that 6 billion coins at an average price of $0.37 will likely prevent that.
But if Cardano price loses support, bearers can expect a further decline towards $0.31.
In line with 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 and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.