27 September 2023
Even with the Cardano network hitting seeing good metrics over the last month, the ADA price has remained rather stale in its performance. However, this trend might soon change for the digital asset as multiple developments have emerged that could fast-track its recovery.
Cardano Whales Go To Market
It is no secret that Cardano whales have often doubled down on their positions even at times when the digital asset has suffered from the bear trends. This has not changed, especially with the most recent dip in the ADA price, which sent the whales into a buying frenzy instead of dumping their holdings.
Earlier in the week, ADA fell as low as $0.2422, which is the second-lowest that the price has been this month but this did not deter believers in the coin. Instead, Cardano whales increased their activity, suggesting that they were scrambling to buy the digital asset at what is believed to be a low price.
Data from IntoTheBlock showed that these whales moved over $3 billion worth of ADA on Monday alone. While this doesn’t exactly serve as evidence for buying, the time frame in which this happened is what points toward accumulation.
The whales began to move these tokens not long after the price dip. Additionally, since then, the digital asset has been showing strength with the ADA price recovering and eventually beating the resistance at $0.245.
This continued show of strength on the part of the altcoin suggests that the whales had been buying the token rather than selling it. In this case, they expect the ADA price to continue to rise, and choose to add to their positions.
ADA Price Could Be Poised For A Rally
Another interesting development on the Cardano network that could boost the ADA price is the rise in its active users. IntoTheBlock’s data showed a prominent jump in the daily active users that brought it up to over 42,500 addresses. This translates to a more than 60% increase from the prior figures.
Related Reading: Ethereum Open Interest Barrels Past $5.2 Billion, Is It Time To Buy?
Now, the daily active addresses have begun to correct downward with the DeFi tracking website DeFiLlama showing a total of 31,846 active users in the past 24 hours. Nevertheless, this remains significant, surpassing the likes of Avalanche at 29,042 daily active users.
This surge in active addresses suggests rising interest in the Cardano network. Given that ADA is the token that powers the entire ecosystem, a rise in activity means more demand for the token as users need it to carry out transactions.
The ADA price has also been trading in a tight range for some time. So a bounce from there would see the token’s price retest the $0.26 resistance in no time.