Cardano Price Rises as Whales Buy the Dip: What Do They Know?
• Cardano (ADA) is trading in the low $0.39s, forming a descending triangle which could lead to bearish breakouts.
• Whale activity is driving strength in the Cardano network, with large on-chain transactions and rising volumes.
• Cardano’s long-term prospects look good due to its highly developed blockchain and new DeFi projects launching.
Cardano Price Forecast
Cardano (ADA) was last changing hands in the low $0.39s and as such remains marooned well within this week’s $0.38-$0.40ish ranges. Cardano’s lack of volatility is surprising given that crypto and broader financial markets have been substantially roiled by Wednesday’s Fed meeting on Friday’s US jobs report but ADA bulls will take heart from the fact that the $0.38 support level has continued to hold firm, and that ADA hasn’t fallen below either its 50 or 100-Day Moving Averages. Somewhat ominously, Cardano has formed a descending triangle in recent weeks, which often form ahead of bearish breakouts, so a break below key near-term $0.38 support could open the door to a drop back to the low-$0.30s – but ADA could also break to the north of its recent downtrend which would open the door to a move back towards late April highs in the $0.42 area at least.
Whale Activity Signals Strength
Underneath it all, a few key on-chain metrics are signaling strength in the Cardano network – with charts being widely shared across crypto media showing that on-chain ADA trading volumes have continued to rise in recent weeks, with a few recent instances of large daily spikes to multi-month highs – while separate chart courtesy of IntoTheBlock shows that on-chain transactions of at least $100,000 have risen 33% between 28th April and 3rd May.
Why Is Whale Activity Rising?
Whales transacting larger sums suggests smart money might be buying into ADA as it still down around 87% from 2021 peaks despite crypto markets broadly looking into early stages of bull market – plus Cardano’s ecosystem showing promising signs with its highly developed blockchain seeing multiple Decentralized Finance (DeFi) projects springing up driving growth in its trade value locked in smart contracts.
What Will This Mean For The Future Of Cardano?
With strong whale activity and increasing network strength as well as promising long term prospects for Cardano’s development it seems likely that we can expect further gains for ADA if current bullish momentum continues.
