Bitcoin
Why did Cardano price rise 17% amid crypto market crash?
Cardano (ADA) has seen a significant price increase of 20.29% in the last seven days, in line with the current green movement for most cryptocurrencies. ADA trading volume has increased massively since bottoming at $0.335 on July 8, allowing him to overcome most large market cap cryptocurrencies. For those wondering, ADA’s price surge can be attributed primarily to large on-chain transactions over the past seven days.
Cardano outperforms many cryptocurrencies
Cardano is currently outperforming the market and may continue to do so throughout the weekend and into next week. According to the ADA price chart, the cryptocurrency began its bull run on July 8, while most cryptocurrencies were still experiencing price stagnation. This price surge coincided with the announcement of crucial updates for 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 appears to have played a role in starting the shift towards a positive outlook for ADA.
Recent price dynamics indicate that ADA has maintained this bullish sentiment, with the bulls now in control. At the time of writing, ADA is trading at $0.4249, representing a 32% increase from the monthly low of $0.3213 recorded on July 5. According to on-chain data from IntoTheBlock, this increase in ADA’s price has been accompanied by an increase in whale activity on the Cardano blockchain, which likely contributed to the sustained increase. IntoTheBlock’s data shows that the number of daily transactions larger than $100,000 increased from 312 transactions on July 7 to 814 transactions on July 12. This is a notable increase of 160% over the course of the week.
Furthermore, 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 Cardano whale accumulation has contributed to a bullish sentiment for ADA, pushing the price higher. If this accumulation continues, we could see the large holders net flow turning into a positive value on the larger 30- and 90-day time frames.
What’s next for the ADA?
In a bullish scenarioCardano (ADA) could see a price increase in the coming week, especially as the entire crypto market starts to turn 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’s price action over the weekend could determine how it fares in the coming week. It could continue rising 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 from Tradingview.com