The crypto market has seen a series of ups and downs in recent times. While the Federal Reserve’s recent interest rate hike has had a minor influence on altcoins, unlike Bitcoin, Cardano’s native currency, ADA, appears to be defying the odds. Despite the current market downtrend, there are several factors pointing towards a bullish outlook for Cardano. It is expected that ADA will soon become one of the altcoins to surge amid the market’s downtrend and push the altcoin market higher.
ADA Whales Bring Confidence
In a noteworthy shift since April, the Cardano network has seen a significant surge in the volume of USD-denominated transactions. On-chain data from Cardano reveals that the Transaction Volume has consistently remained above the $2 billion mark since April 10th. During the period between April 10th and May 3rd, the Cardano network experienced a staggering 42% increase in the volume of dollars spent, showcasing the platform’s growing popularity and increasing adoption.
A recent report from Input Output Global, the entity driving Cardano’s development, reveals that the network has handled an impressive 65.4 million transactions over the past week alone. However, ADA’s volatility over the past month has raised eyebrows among experts, even in the face of substantial gains in transaction volume.
This prevailing trend can be attributed to a surge in whale activity within the network. The accumulation of coins in whale addresses signals an upswing in the confidence of larger players, a factor that frequently sparks bull runs in the market.
Cardano is surpassing its own milestones with the introduction of new features. A recent development from Input Output Hong Kong (IOHK), the company responsible for the Cardano protocol, has led to the activation of the first Hydra head on the mainnet. This achievement significantly enhances the scalability of the proof-of-stake (PoS) network and signals the beginning of a potential bull run.
ADA Price To Take Support Near This Level
Though the ADA bulls have successfully maintained the price above the EMA-100, they have failed to break the resistance of the EMA-20 trend line at $0.398. Bears are trying to utilize the bearish sentiment in the market by sending the price below $0.37. However, the bulls have not left the game as there is intense buying pressure near $0.37, holding ADA’s upcoming bullish goals.
As of writing, Cardano trades at $0.39, gaining over 2.5% in the last 24 hours. If ADA’s price takes support at $0.37 and rebounds, it will likely break above the 38.6% Fib channel and hit resistance at $0.41. If ADA continues to witness a massive inflow from $0.41, it can extend its bullish surge.
However, on the bearish side, if bulls don’t gain control near $0.37, ADA price’s bearish momentum will take speed. Cardano may touch the bottom level at $0.34.
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Shayan Chowdhury
Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.
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