Cardano Sees Surge in Large Transaction Volume, But Price Direction Unclear

https://cryptolifedigital.com/wp-content/uploads/2024/03/cardano-Bull.png

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.

Read Also: Ripple and HashKey DX Partner to Bring XRP Ledger Solutions to Japan’s Financial Market

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.

Read Also: SEC Counters Ripple’s Motion to Strike Andrea Fox’s Declaration

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.

 


Follow us on Twitter, FacebookTelegram, and Google News

  • 225 Posts
  • 0 Comments
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.
Loading...