The price of Cardano’s ADA token saw substantial gains this week thanks to increasing whale transactions and a more dovish outlook for monetary policy. ADA rallied 18% to over $0.66 after the Federal Reserve signaled potential interest rate cuts on the horizon in 2024. This policy shift has boosted sentiment across cryptocurrencies as liquidity is set to improve.
Keypoints
- Cardano’s ADA token saw an 18% price surge to $0.66 after the latest Fed meeting signaled future rate cuts
- Whale transactions on the Cardano network topped $1.5 billion over 24 hours, showing renewed investor interest
- ADA price broke out above resistance levels, with technical targets at $0.737 and $0.87 representing 35% further upside
- Trading volumes on Cardano decentralized exchanges spiked over 140% week-over-week nearing $50 million
- ADA hit 17-month highs, with buyers optimistic on crossing the psychological $1.00 level if momentum sustains
According to on-chain analytics platform IntoTheBlock, large transactions on the Cardano network topped $1.5 billion over the prior 24 hours. These high-value transfers suggest renewed investor interest, especially amongst whales who conduct transactions over $100,000 in size.
This influx of big money has propelled Cardano’s overall volume to $19.47 billion while its market capitalization sits near $23 billion. ADA’s surge comes as investors pile back into risk assets across the board following the Fed’s indication of a softer stance.
Sentiment has swiftly turned bullish on Cardano’s technical outlook as well. ADA recently experienced a breakout above key resistance levels that had constrained its price action for months. This decisive move opens up further upside targets at $0.737 and $0.87 in coming weeks, representing 35% additional upside from current levels.
???? #Cardano had a sudden loss of small wallets back on November 17th, 98.1% of which were wallets holding between 1-10 $ADA. A drop of addresses this size or smaller often indicates capitulation, and a potential price turning point. $ADA is +65% since. https://t.co/MyjAXQhr7m pic.twitter.com/C9nvKbfDC8
— Santiment (@santimentfeed) December 12, 2023
Beyond spot markets, ADA’s resurgence is also showing up in trading activity on decentralized exchanges built on the Cardano blockchain. Volumes on Cardano DEXs spiked 140% week-over-week to approach $50 million as per DefiLlama data. This shows strengthening conviction around the altcoin as both short-term traders and long-term holders accumulate positions.
Given momentum remains strong, buyers have set their sights on ADA reclaiming the important psychological $1.00 mark in early 2024. Prices hit a 17-month high already, crossing above its 50-week moving average. Additional whale transactions could push Cardano toward this round number milestone which would further validate the durability of its uptrend. If ADA drops decisively below $0.70 however, its breakout would be invalidated with risk of a retreat back towards the $0.55 level.
Source: https://blockonomi.com/cardanos-ada-token-surges-on-whale-activity-and-fed-policy-shift/