Cardano (ADA) Transaction Volume Reaches 3-Month Peak — What’s Next for Price? -TGN

Cardano (ADA) bulls continue to defend the $0.30 price support level amid flat momentum in the broader altcoin market. On-chain data suggests holders are consolidating their position rather than placing big bets. What now for the ADA price in the coming weeks?

The price of Cardano (ADA) posted double-digit gains to recover $0.35 after Ripple’s much-touted victory against the SEC. A closer look under the hood shows that ADA transaction volumes have risen to new heights over the past 3 months.

As regulatory concerns surrounding Cardano are now easing, major crypto exchanges Coinbase and Kraken have announced plans to offer ADA again. Will it propel ADA price to new heights in H2 2023?

Cardano transaction volume peaks at 3 months

Despite the turbulent price action and widespread regulatory FUD in recent months, Cardano has, quite remarkably, maintained a steady growth in transaction activity.

On-chain data represented by Sanitation reveals that it reached a 3-month transaction volume peak of 12.16 billion ADA on July 20.

This is 19% and 30% higher than the previous monthly peaks of 10.61 billion and 9.77 billion ADA respectively in May and June 2023.

Transaction volume measures the real-time changes in the level of economic activity that users perform on a blockchain network. When it rises, it means a growing demand for the underlying native cryptocurrency in the next work.

ADA could build stronger momentum for the next bullish altcoin season if it continues to rise.

Whales consolidate their positions leading up to the next meeting

In addition, while ADA has failed to make significant gains over the past week, whale investors have continued to hold on to HODL. Santiment reports that crypto whales banking 10 million to 100 million ADA have kept their balances relatively constant since June 20.

The chart below highlights that between July 20 and July 24, they kept their balance at 12.21 billion coins.

Whales Wallet balances tracks the trading activity of major institutional investors and high net worth holders within a blockchain ecosystem. The whale HODL firm, as seen above, reflects their neutral stance as they wait for future changes in market conditions.

With the imminent launch of the Hydra Pay product and potential relisting by several top exchanges, Cardano Transaction volumes could reach new peaks in the coming months.

Therefore, it is only a matter of time before bullish whale investors break out of their current consolidation mode and start taking long positions on ADA again.

ADA Price Prediction: $0.35 seems more likely than $0.25

Recent price action and whale trading activity show that short-term market sentiment around Cardan is largely neutral.

However, critical on-chain signals such as transaction volume growth, impending new exchange listings and product launches also flash bullish signals in the medium to long term.

Therefore, ADA seems more likely to hold the $0.30 support level and push for the $0.35 price target.

However, strategic bulls will be wary of the $0.33 resistance level. As shown below, 196,000 investors had purchased 1.61 billion ADA coins at an average price of $0.33. ADA could enter a mid-retracement if they choose to exit their positions when they break even.

But if Cardano transaction volume growth fuels bullish momentum as predicted, ADA could reclaim the $0.35 target.

Although unlikely, the bears have a slim chance of negating the bullish narrative if ADA dips below $0.25. However, the $0.29 support level seems pretty formidable right now.

As shown above, 64,000 investors had purchased 2.1 billion ADA coins at an average price of $0.29. They could show bullish support to avoid going into a net losing position.

Nevertheless, if that support level fails to hold, ADA could drop to $0.25

disclaimer

In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.