Cardano (ADA) has seen a notable 20.29% increase in price over the past week, aligning with the overall positive trend in the cryptocurrency market. This surge in ADA’s trading volume, starting from a low of $0.335 on July 8, has allowed it to outperform many other high-market-cap cryptocurrencies.
One of the primary factors contributing to ADA’s price surge has been the increase in on-chain transactions over the past week. This surge coincided with the announcement of crucial updates related to the upcoming Chang hard fork, which represents a significant milestone for the Cardano blockchain. The completion of the upgrade to node 9.0, essential for the Chang hard fork, has been highlighted as a key driver behind the positive sentiment surrounding ADA.
On-chain data from IntoTheBlock indicates a substantial increase in whale activity on the Cardano blockchain, further fueling the price surge. The number of daily transactions exceeding $100,000 has seen a significant rise, indicating growing interest from large holders. Additionally, the “Large Holders Netflow” metric shows a notable 27.53% increase in holdings by large holders over the past week, contributing to the overall bullish sentiment surrounding ADA.
Looking ahead, Cardano could potentially sustain its upward price momentum, especially as the broader cryptocurrency market shows signs of turning positive. However, failure to break above the minor resistance level at $0.43 could lead to a bearish scenario, potentially reversing ADA’s recent gains. The price movement over the weekend will be crucial in determining ADA’s performance next week, with a possible test of the $0.515 resistance level where a significant number of ADA addresses are poised to take profits.
Cardano’s recent price surge can be attributed to a combination of increased on-chain transactions, positive market sentiment surrounding the upcoming Chang hard fork, and growing accumulation by large holders. The coming days will be pivotal in determining whether ADA can maintain its bullish momentum or face a potential downturn. Investors and traders should closely monitor key price levels and market trends to make informed decisions regarding Cardano’s future performance.
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