Markets
Why Cardano Price Surged 17% Amid Crypto Market Crash?
Cardano (ADA) has seen a significant price increase of 20.29% over the past seven days, in line with the current green movement for most cryptocurrencies. ADA trading volume has increased significantly since hitting a low of $0.335 on July 8, allowing him to surpass the majority of large-cap cryptocurrencies. For those wondering, ADA’s price increase can be primarily attributed to the large on-chain transactions over the past seven days.
Cardano Outperforms Many Cryptocurrencies
Cardano is currently outperforming the market and could continue to do so throughout the weekend and the week ahead. According to the ADA price chart, the cryptocurrency began its rise on July 8, when most cryptocurrencies were still experiencing stagnant prices. This price increase coincided with the announcement of crucial updates to the upcoming Chang hard fork, which represents a pivotal moment for the Cardano blockchain.
As reported by BitcoinistCardano founder Charles Hoskinson noted in an AMA broadcast that the upgrade to node 9.0which is essential for the Chang hard fork, is almost complete. This seems to have played a role in starting the shift towards a positive outlook for ADA.
Recent price momentum indicates that ADA has maintained this bullish sentiment, with bulls now in control. At the time of writing, ADA is trading at $0.4249, which is a 32% increase from the monthly low of $0.3213 recorded on July 5. According to on-chain data from IntoTheBlock, this surge in ADA’s price has been accompanied by an increase in whale activity on the Cardano blockchain, which has likely contributed to this sustained increase. IntoTheBlock’s data shows that the number of daily transactions above $100,000 has increased from 312 transactions on July 7 to 814 transactions on July 12. This is a notable increase of 160% over the entire week.
Additionally, IntoTheBlock’s “Large Holders Netflow” metric indicates that large holders have increased their holdings by +27.53% over the past seven days. This increase in accumulation by Cardano whales has contributed to a bullish sentiment for ADA, pushing the price higher. If this accumulation continues, we could see the large holders’ netflow turn into a positive value in the longer 30-day and 90-day time frames.
What’s next for the ADA?
In a bullish scenarioCardano (ADA) could follow the price rally in the coming week, especially as the entire cryptocurrency market starts turning positive. On the other hand, failure to break above the minor resistance at $0.43 could open a bearish scenario, with ADA reversing its gains.
ADA price action over the weekend could determine its performance next week. It could continue to rise after breaking above $0.43 to test another resistance level around $0.515, where there are currently 564,830 ADA addresses. waiting to make a profit.
Featured image created with Dall.E, chart by Tradingview.com