Cardano Sees Surge in Large Transaction Volume, But Price Direction Unclear
On-chain data analysis firm IntoTheBlock revealed a significant increase in large transaction volume on the Cardano network. Over the past week, the daily average volume of ADA transactions exceeding $100,000 reached a staggering $13.84 billion. This represents a third of Bitcoin’s transaction volume during the same period and a massive 16 times more than Dogecoin. The highest daily volume occurred on April 22nd, coinciding with a brief price recovery for ADA.
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Cardano whales are busy, with an average large transaction volume of $13.84B a day in the last 7 days.
For comparison, this is a third of Bitcoin's current volume, 5x as much as Litecoin's volume and over 16x that of Dogecoin! pic.twitter.com/xU2XMoEQbM
— IntoTheBlock (@intotheblock) April 29, 2024
Large Transaction Volume Not a Guarantee of Price Increase
While the high transaction volume suggests increased activity on the Cardano network, it doesn’t necessarily translate to a price surge. These large transactions could represent either inflows or outflows from exchanges, making it difficult to predict future price movements. The decline in transaction volume alongside a recent price drop for ADA further highlights this ambiguity.
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Cardano Whales Accumulate, Analyst Predicts Price Targets
Despite the price dip, Santiment’s data indicates an ongoing accumulation trend among large investors (whales) holding between 100,000 and 100 million ADA. This accumulation could potentially fuel a future price recovery for Cardano.
Market analyst Cobra Vanguard identified an expanding price channel for ADA since the beginning of 2024. This pattern suggests higher highs and lower lows, potentially leading to further price increases. The analyst has outlined several price targets, with the first hurdle at $0.52, followed by $0.57 and $0.62. Breaching these levels could pave the way for a push towards $0.70 and ultimately $0.775.
Cardano’s future price movement remains uncertain. While large transaction volume and whale accumulation hint at potential growth, the lack of clarity on transaction direction and ongoing market volatility make price predictions challenging.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
