Cardano price maintained its impressive upward move following the surge to $0.195, which was its highest point since July 4. This altcoin is up by almost 26% over the past week and is one of the better-performing ones amidst a weak market environment.
It’s worth noting that this rally came even as the number of wallets holding ADA has dropped. However, at the same time, the growing number of whales and continued network development have likely helped fuel this move higher.
Also Read | XRP Price Eyes $50+ Rally as Record Oversold Signal Meets Strong ETF Inflows
Whale Buying Supports Cardano Price Recovery
According to the data analytics firm Santiment, the number of non-empty wallets on Cardano is 7,070 less than it was two months ago. It shows that although ADA is making gains, many small retail investors have not returned to the game yet.
Higher prices along with a lower number of wallets indicate that big players are taking the supply off the market rather than retail investors.
Network development has been quite busy too. There are developments underway on a few major initiatives such as the Leios testnet, Hydra scaling, Mithril updates, Pyth Network integration, and Project Catalyst funding.
In addition, crypto analyst Ali Martinez noted that the whales were holding more than 240 million ADA in just five days.
Another analyst, Javon Marks, has drawn comparisons between the present Cardano structure and its 2020-2021 cycle to predict that ADA will eventually hit $2.90. But still, such an expectation is much higher than its current market price.
Cardano Price Signals Bigger Rally Ahead
Market analyst Leon Voss observed that Cardano price has breached a long-term descending trendline which had been keeping its price capped. He further stated that staying above the level of $0.17 is essential to preserve the prevailing bullish pattern.
Another popular crypto analyst, Crypto Patel, said he remains bullish on ADA’s future performance, arguing that Cardano has undergone one of its deepest pullbacks and has returned to its historical demand zone, where its previous major rally began.
According to Patel, a move above $0.28 would strengthen the bullish outlook, while a break above $0.50 would provide stronger confirmation. However, he believes a two-week close below $0.08 would invalidate this setup.
Cardano DeFi Growth and Developer Activity
Apart from price movement, the DeFi ecosystem of Cardano has also grown. The TVL of its network has grown by 11% in the last week, from $62.32 million to almost $70 million.
The activity among developers has also been another good indicator for the blockchain. The data available at Chainspect shows that Cardano has been second in terms of developer activity, with 43 developers working actively on its protocol. Solana had only 21 developers compared to Ethereum, which was first with 475 developers.
As whales accumulate, development continues, and DeFi usage increases, all eyes remain on Cardano to see if the Cardano price will be able to hold onto its recently established momentum going forward.
Also Read | Robinhood Wins UK Crypto Registration as New FCA Rules Approach
