Cardano (ADA) has seen a remarkable 20.29% price increase over the past week, aligning with the current positive trend seen across most cryptocurrencies. The surge in ADA’s price can largely be attributed to a significant rise in on-chain transactions, driving up trading volume. This increased activity has positioned ADA as one of the top-performing cryptocurrencies among the large market-cap assets.
The recent surge in ADA’s price coincided with the announcement of crucial updates related to the upcoming Chang hard fork, a key milestone for the Cardano blockchain. Founder Charles Hoskinson indicated that the upgrade to node 9.0, essential for the Chang hard fork, is nearing completion. This development progress has instilled a positive outlook for ADA, driving investor sentiment and contributing to the ongoing bullish trend.
Notable on-chain data from IntoTheBlock reveals a notable increase in whale activity on the Cardano blockchain, indicating a significant surge in transactions exceeding $100,000. Moreover, the “Large Holders Netflow” metric indicates a substantial 27.53% increase in holdings by large ADA holders over the past week. This accumulation by whales has added to the bullish sentiment surrounding ADA, supporting its upward price movement.
As ADA continues to showcase bullish momentum, there is a possibility of the cryptocurrency maintaining its uptrend in the upcoming week, especially as the broader crypto market turns positive. However, a failure to break above the minor resistance level at $0.43 could potentially trigger a bearish scenario, leading to a reversal of gains. The price action over the weekend will play a crucial role in determining ADA’s performance in the following week, with a potential test of a resistance level at $0.515 on the horizon.
While ADA has displayed impressive price growth fueled by on-chain transactions, favorable updates, and increased whale accumulation, the sustainability of this bullish momentum remains contingent on market dynamics and upcoming price movements. Traders and investors should closely monitor ADA’s price action in the coming days to assess the cryptocurrency’s trajectory and potential for further gains.