Cardano (ADA), one of the competitive smart contracts tokens giving Ethereum a run for its money is set for another promising week, following weeks of sustained gains from its October lows of $0.24. Over the last 30 days, ADA gained 36% to trade at $0.351 on Monday backed by $328 million in 24-hour trading volume and a market cap worth $12.4 million.
Cardano Whale Transaction Count Surpass $1 Million
The dollar value of transactions made by whales recently surpassed $1 million. Such spikes, exceeding 6700 counts are considered bullish in a downtrend. However, with Cardano price continuing to rally since October, whales could be moving ADA while betting on higher prices toward $1.
As observed on the chart provided by Santiment below, the prevailing whale transaction counts appear to be coinciding with a local top mimicking similar occurrences in January 2022 and June 2022. With that in mind, there is a high chance that ADA price would climb higher to form a local top before a correction in the trend.
Cardano Transaction Volume Explodes
The transaction volume of the ninth-largest cryptocurrency is increasing in tandem with the whale transaction count and the ADA price. Over the last three months to November 6, the transaction volume climbed from approximately 237 million to about 332 million.
This increases persistent increase in transaction volume implies that investors are moving tokens on-chain possibly positioning themselves for a larger rally in Cardano price.
Cardano Price Prediction: Is ADA Ready To Climb To $1?
Cardano is trading at $0.351 after breaking above resistance which could soon flip into support at $0.35. The Moving Average Convergence Divergence (MACD) indicator reinforces the bullish thesis in ADA, hence the likelihood of the uptrend closing the week close to $0.5 and the month above $1.
An incoming bullish cross would add credulity to the bullish narrative. This bullish signal occurs when a short-term moving average flips above a long-term one.
In Cardano’s case, the 50-day Exponential Moving Average (EMA) (red) is on the verge of crossing above the 100-day (EMA) blue. Its presence on the chart would indicate that the path with the least resistance is upwards. In other words, Cardano has a higher chance of keeping the uptrend intact than pulling back to sweep liquidity at $0.3.
However, traders need to be ready for any eventually, while marking out key milestones achieved by Cardano. Note that sustaining support above $0.35 assures traders that betting on gains to $0.5 and $1 would not result in capitulation or unrealized losses for investors.
Meanwhile, losing the same level as support such that it becomes a resistance again may encourage traders to sell, locking in the gains. All the same, a pullback could also call on more buyers to seek exposure to Cardano, especially if they already feel sidelined. Such fresh entries might position ADA price an even larger breakout.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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