Will Cardano (ADA) Reclaim $1 as Whale Interest Grows?

• Cardano has regained momentum, rising over 13% to trade at the $0.84 mark.
• The daily trading volume of ADA surged over 61% to $2.74 billion.

The cryptocurrency market exhibits mixed trends, with assets rising and falling. With Bitcoin’s steady momentum, major altcoins like Ethereum, Solana, and XRP fluctuate and face varying levels of volatility. While looking at Cardano (ADA), it has registered a 13.35% gain over the past 24 hours. 

In the early hours, ADA visited its lowest trading level at $0.7239 and eventually ascended to the current price range. As of the current time, Cardano trades at $0.8409, with its daily trading volume reaching $2.74 billion, as per CMC data. 

Notably, Cardano has gained over 58.24% in the past seven days. ADA hit a weekly high of $0.8069 from a low of $0.5332. However, the bullish outlook favors the asset avoiding a deeper slide. 

As per Santiment data, Cardano with its transaction volume reached a 7-month high, and over 8,900 whale transactions were recorded for the second consecutive week. The asset’s price ratio against Bitcoin is also nearing an 8-month high. Such activity levels, like in June, have preceded notable price surges with over 26% increase in the ADA/BTC pairing.

On the other hand, the large-scale Cardano holders with over $10 million in ADA, have increased their holdings, by 145.72%, over the past month. This accumulation suggests strong whale activity. 

What Lies Ahead for ADA?

The current market sentiment of ADA is approaching the overbought zone with the daily relative strength index (RSI) positioned at 71. Besides, the asset’s short-term 9-day moving average is found above the long-term 21-day moving average at $0.763 and $0.744, respectively. 

Cardano’s daily price chart exhibits an upside correction after breaking the crucial price ranges. Cardano’s uptrend factors could propel the asset to hit and test a high of $0.8846. An extended bullish trend might push ADA to climb to a level higher than $0.92. 

On the contrary, if the ongoing momentum reverses, ADA might slip to the downside, testing the nearby support at $0.7943. If the altcoin continues to trade on the downside, it could further retrace down to $0.7334.

The technical analysis of ADA suggests the existing positive sentiment as the Moving Average Convergence Divergence (MACD) line settled above the signal line. This suggests the potential emergence of a bullish trend.  

In addition, the Chaikin Money Flow (CMF) indicator of ADA is found at 0.21, which refers to the increased demand and positive money flow within the market. Notably, the trading volume of the asset has increased by over 61.53%.

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