Increased Whale Activity in ADA
Cardano is a blockchain platform that facilitates transactions in its native ADA cryptocurrency and supports the development of secure and scalable applications. It is also integrated with various payment systems, with numerous projects being built on the Cardano platform.
To carry out transactions and engage in governance, users need to purchase ADA tokens. Ownership of ADA grants the ability to become a slot leader, add new blocks to the blockchain, and share in transaction fees. ADA tokens are also used for voting on software policies like inflation rates, incentivizing users to hold ADA and protect its future value.
Since October 19, 2023, ADA has increased by over 50%, and one key factor behind this rise is a substantial uptick in whale transactions. When whales increase their trading activity, it often signals confidence in the asset’s short-term price potential.
According to IntoTheBlock, ADA whales and investors accumulated 1.89 billion ADA in October 2023, equating to an investment worth more than $600 million. Notably, much of this accumulation occurred between the $0.24 and $0.27 price range. This may indicate a bullish phase, potentially pushing the price above $0.40 in the near future.
Cardano (ADA) Continues Leading in Crypto Development
Another encouraging sign for ADA is its development activity. On-chain analytics firm Santiment reported that Cardano outperformed other major cryptocurrencies in terms of development activity. According to Santiment, the top ten cryptocurrencies by development activity over the past 30 days are:
1. Cardano (ADA), 2. Polkadot (DOT), 3. Kusama (KSM), 4. Hedera (HBAR), 5. Aptos (APT), 6. Ethstatus (SNT), 7. Chainlink (LINK), 8. Cosmos (ATOM), 9. Ethereum (ETH), 10. Vegaprotocol (VEGA).
Development activity is measured by the work carried out by developers on a cryptocurrency’s public GitHub repositories over the past 30 days. Unlike other metrics that count the total number of commits, Santiment tracks “events” such as pushing a commit, forking a repository, or creating an issue. This provides a clearer picture of developers’ real work and avoids duplication or errors that might occur when counting only commits.
For instance, forking a repository creates a copy of the repository with all prior commits. Santiment treats forking as one event, which helps prevent misattribution of old commits to new developers. While ADA may continue to rise above its current price in November 2023, investors should remember that ADA is highly volatile, and although positive developments could lead to significant price increases, there are always risks involved.
ADA remains a speculative investment, and as such, caution is advised. The broader macroeconomic environment also adds uncertainty, with central banks raising interest rates to combat inflation, which could negatively impact risk-sensitive assets like cryptocurrencies.
Technical Breakdown of Cardano (ADA)
Since October 19, 2023, ADA has risen by more than 50%, from $0.23 to a high of $0.37. The current price is $0.35, and as long as ADA remains above $0.30, the trend appears bullish, keeping it in the “buy zone.”
Key Support and Resistance Levels for Cardano (ADA)
The chart from April 2023 highlights critical support and resistance levels for ADA. Currently, the price trend is controlled by the bulls. If ADA rises above $0.40, the next resistance target is $0.45, followed by $0.50. On the flip side, if ADA drops below the $0.30 support level, this could signal a “sell” and open the door to a decline towards $0.25. If the price breaks below $0.25, which is another strong support level, it could further decline to around $0.20.
Factors Supporting a Cardano (ADA) Price Increase
Over the past few weeks, there has been a significant increase in ADA’s trading volume. IntoTheBlock data reveals that ADA whales acquired 1.89 billion ADA in October, signaling confidence in the token and potentially applying upward pressure on its price. From a technical perspective, ADA still has room for growth, and if the price surpasses $0.38, the next target could be $0.40. ADA’s price is also correlated with Bitcoin’s performance, so if Bitcoin’s price exceeds $40,000, ADA might see a rise in value as well.
Factors Indicating Potential Decline for Cardano (ADA)
Investing in ADA comes with high risk and unpredictability. While positive developments can result in notable price increases, they also carry significant risks. The macroeconomic environment remains uncertain, as central banks continue to raise interest rates to tackle inflation, which may negatively affect risk assets like cryptocurrencies. If ADA breaks below the critical $0.30 support level, the price could move towards the $0.25 mark.
Expert and Analyst Insights
Since October 19, 2023, ADA has seen a sharp rise of over 50%. One of the main contributors to this surge is the increased whale activity, with ADA whales and investors acquiring 1.89 billion ADA in October, amounting to over $600 million in investments. Much of this accumulation occurred between $0.24 and $0.27, suggesting a potentially bullish phase ahead.
The big question now is whether this trend will push ADA beyond the $0.40 mark. Many analysts believe that if ADA remains above $0.30, it will stay in the “buy zone.” However, they also caution that potential regulatory developments, such as the SEC approving a Bitcoin ETF in the U.S., could influence ADA’s price. Conversely, any regulatory concerns or broader market corrections could have a negative impact on investor sentiment.
Afneitun ábyrgðar: Cryptocurrencies are extremely volatile, and investing in them carries significant risk. Never invest money you cannot afford to lose. The information provided here is for educational purposes only and should not be considered as financial or investment advice.
