Will the whales be able to keep the price of Cardano (ADA) above $0.30
Date: 2023-08-04 Author: Karina Ziganova Categories: BLOCKCHAIN
The price of Cardano (ADA) has retreated to $0.30, and key on-chain metrics indicate a significant decline in user interest in the network.
Ripple's victory over the SEC in mid-July provoked a surge of investor interest in Cardano. However, in the past two weeks, the activity of network users has been steadily declining. We are looking into whether the whales can prevent the price of ADA from falling below a key support level.
Users are losing interest in Cardano
The high volatility of ADA over the past week may be due to a decrease in network activity. According to analytics platform Santiment, between July 10 and August 1, the number of daily active addresses (DAA) in Cardano decreased by 52%, from 77,291 to 36,920.
The Daily Active Addresses metric evaluates the activity of blockchain users by summing up the daily number of unique wallet addresses they interact with. Strategic investors interpret its decline as evidence that users are losing interest in the underlying asset.
Given the scale of the fall, the ADA price correction looks quite natural.
Whales try to prevent ADA from falling
While retail investors have taken a backseat, the Cardano whales have moved into action to prevent the price from dropping further. The chart below shows that between July 14 and August 2, addresses with balances between 1M and 10M ADA bought another 150M coins worth about $45M.
Such a large influx of funds in a short period of time means that the big players remain positive about Cardano. However, without sustained demand and an increase in transactional activity, their efforts may soon come to naught.
Cardano Price Prediction: Consolidation around $0.30
Considering the above factors, Cardano is likely to consolidate around $0.30. As shown in the IntoTheBlock chart, the 50,840 addresses that bought 1.88 billion ADA at an average price of $0.29 could provide significant support to the asset.
However, a wall of 121,000 wallets that purchased 1.14 billion tokens at an average price of $0.32 will prevent further upward movement. Thus, without significant momentum, ADA will continue to trade in this narrow range.
