The price of Cardano (Cardano-ADA) – the base digital currency of the Cardano blockchain based on smart contracts – is currently $0.34 per currency, which means an increase in its price by 4% during the day, and this comes according to the general rise in the digital currency market; The recent positive news has played an additional role in the rise in the price of Cardano coin, especially the news about the intention of the team developing the Cardano blockchain to do a new update on their blockchain.
The ADA/USD currency pair recorded an increase of about 14% compared to its price bottom recorded at the end of last week at the $0.30 price level, in light of fears of the impact of a possible financial crisis in the United States on the rise in the crypto market. Despite the recent rise in the price of the Cardano-ADA coin, its value is still about 7.5% lower compared to the last recorded price peak near the $0.37 price level, after the price of this digital currency refused to test the level corresponding to the measured moving average index. over a period of 200 days.
Although this is not an indicative sign in terms of technical analysis, the financial data released by the blockchain is going in the opposite direction and calls for more optimism, as these data indicate an increase in the number of transfers of the portfolios of bullish investors (whales) on the Cardano blockchain. This is supported by the chart from the @ali_charts Twitter account, which shows the increase in Cardano-ADA token transfers above $100,000 on the Cardano blockchain; In a tweet posted on the @ali_charts account on Twitter, the following was stated: “This indicator indicates an increase in institutional investment and an increase in the activity of Cardano whales, which gives an idea of their investment strategies.”
What is the secret behind the recent whale activity?
We can relate the increased activity of whales on the Cardano blockchain to the wave of improvements within the technical ecosystem of the Decentralized Finance (DeFi) environment of the Cardano chain. A well-known Twitter account @caradno_whale, an account known for its influence within the Cardano community, recently posted positive data regarding the increase in the number of TVLs on the Cardano blockchain.
According to the “ADA Whale” Twitter account, the number of pledged coins (TVL), which refers to dollar-denominated digital currencies that are pledged according to smart contracts on the Cardano blockchain, is witnessing a monthly increase of 20%. -ADA) and reaching its previously recorded price peaks at the end of the current year, the value of the coins pledged on the Cardano blockchain could reach about $3 billion.
According to the aforementioned anonymous Twitter account, “This analysis does not include the assets of the soon-to-be-launched trading platforms: @axotrade, @GeniusyieldO, @TeddySwap, @yamfore, SpectrumLabs, and @liqwidfinance.” The same account added that Cardano “will become one of the top five Decentralized Finance (DeFi) tech ecosystems during the next bull period, backed by a large and thriving community.”
Cardano price predictions, where will the price of this cryptocurrency go?
The support level turned into resistance at $0.35, which is a price area that roughly coincides with the 200-day moving average, which could lead to a continuation of the Cardano price hike in the near term; Despite the survival of this digital currency within a downward trend from its price peak recorded last February at the $0.42 price area, the increase in buying pressures in the general scene of the digital currency market, in addition to the registration of major digital currencies such as Bitcoin (Bitcoin-BTC) and Ethereum. (Ethereum-ETH) and other similar coins with new multi-month highs, it will only be a matter of time until the price of Cardano starts to skyrocket.
And in the event that the price of the Cardano-ADA currency breaks the resistance level corresponding to the $0.35 price area and exceeds the 200-day moving average, there may be a possibility to re-test a downside trend associated with the price peaks recorded in June of last year; And in the event that it exceeds the annual price peaks, the field may be open for a possible upward trend that may reach the price peaks recorded last summer at the $0.60 price area, which means an increase of up to 70% from the current price levels.