Cardano (ADA) is primed for a potential rally as recent developments suggest an acceleration in its recovery. Despite the network’s strong performance in recent months, the ADA price has remained lackluster. However, several factors indicate that this trend could soon change.
One notable development is the increased activity of Cardano whales in the market. Traditionally, these whales have doubled their positions even during downward trends. This behavior has continued, especially in light of the recent drop in the ADA price, which has prompted whales to go on a buying spree rather than sell off their holdings.
At the start of the week, the ADA price fell to as low as $0.2422, marking the second-lowest price this month. However, this didn’t deter believers in the coin. Instead, Cardano whales increased their activity, indicating their efforts to buy the digital asset at a presumably low price.
Data from IntoTheBlock shows that these whales moved over $3 billion worth of ADA on Monday alone. While this may not serve as definitive evidence of buying activity, the timing suggests accumulation. The whales began moving these tokens not long after the price drop, and since then, the ADA price has shown strength, recovering and eventually surpassing the $0.245 resistance level.
This sustained display of strength by the altcoin suggests that the whales have been buying rather than selling the token. In this case, they anticipate further price increases and have decided to increase their positions.
Another interesting development in the Cardano network that could push the ADA price higher is the increase in active users. Data from IntoTheBlock shows a significant rise in daily active users, surpassing 42,500 addresses. This marks an increase of over 60% compared to previous numbers.
Although the daily active addresses have now begun to correct lower, with DeFi tracking website DeFiLlama indicating a total of 31,846 active users in the last 24 hours, this remains significant and surpasses similar networks like Avalanche with 29,042 daily active users.
This increase in active addresses indicates rising interest in the Cardano network. As ADA is the token that powers the entire ecosystem, increased activity translates to higher demand for the token as users need it to carry out transactions.
Additionally, the ADA price has been trading within a tight range for some time. A recovery from this range would likely result in the token retesting the $0.26 resistance level in a short period.
Overall, the recent behavior of Cardano whales and the increased activity of users in the network suggest a potential rally for the ADA price. While there are no guarantees in the volatile cryptocurrency market, these developments indicate positive signs for Cardano’s recovery. Investors and enthusiasts will be closely watching to see if these trends continue and propel ADA to higher levels.
