In defiance of a broader cryptocurrency market downturn on Wednesday, Cardano’s ADA has shown resilience with a 7% increase in its market value, according to data from Santiment. The positive movement comes as a surprise amid a general trend of decline across the crypto space.
One notable aspect contributing to Cardano’s positive momentum is the total number of ADA addresses shrinkage. Analysts suggest that this reduction is a positive sign, often indicative of smaller holders capitulating and selling their assets at a loss to larger institutional players.
In a sudden surge of buying pressure, Cardano’s ADA witnessed a substantial uptick in its market capitalization, shooting up by over $1 billion within a 24-hour period. The latest data reveals that ADA’s overall market capitalization has now reached $15.5 billion, solidifying its position as the 8th-largest cryptocurrency in terms of valuation.
During this recent upswing, ADA experienced a rally, moving from an intraday low of $0.412 to a peak of $0.455, representing a significant gain of 12%. This surge is part of a broader trend of ADA increasing by 50% from its mid-June lows. One of the driving factors behind this resurgence is the increased attention and activity from investors.
Over the past 24 hours, ADA’s trading volumes skyrocketed to $850 million, reflecting an impressive 138% increase. Currently, Cardano is trading at 0.445 with a 4% gain in the last 24 hours and a 19% gain in the 7-day chart.
Cardano Uptick in large Transaction
Analysis of on-chain activity on Cardano Explorer reveals a consistent uptick in transactions, surpassing 1.5 million during epochs 450, 451, and 452 (with each epoch lasting five days in Cardano terms).
A noteworthy increase in the count of “large transactions” to over 7,000 in early December suggests growing interest from institutional investors and whales. This marks a significant rise from the 4 to 6 thousand range observed throughout much of November.
The expanding Cardano ecosystem is evident with the introduction of over 150 new projects on the platform. The creation of nearly 10 million native tokens and the processing of over 79 million transactions to date underscore Cardano’s position as a robust and extensive network.
Crypto analyst Ali Martinez adds to the positive sentiment, anticipating a potential price spike for Cardano. The rise in large transactions is seen as a clear indicator of increasing interest from both institutional investors and whales, further supporting the bullish outlook for ADA.
Cardano (ADA) Technical Analysis
Cardano is currently traversing a horizontal trend channel in the medium to long term, reflecting investor uncertainty as they await directional signals. A positive indication lies in an upward breakthrough, whereas a downward break signals a negative outlook.
As per data from Investtech.com, the currency is currently testing resistance at the 0.45 points mark. While this may provoke a negative reaction, surpassing the 0.45 points threshold would be interpreted as a positive signal.
Anticipating a potential rise to $0.46 for the ADA, it’s noteworthy that resistance may materialize at this level. A drop from this point, yet remaining above $0.40, increases the likelihood of an upward breakout, possibly leading to a surge to $0.52.
Conversely, the initial indication of weakness would be a descent below $0.40, signaling a rejection of higher levels. If bears manage to drive the price beneath $0.38, there’s a potential for a decline to $0.34.
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