Investors in Cardano (ADA) are rejoicing as the cryptocurrency’s price increased by 17.35% over the past week. Alongside this rise, ADA’s trading volume surged by 14.11% within 24 hours, reaching $339 million. According to CoinMarketCap, ADA’s market value experienced a 4% boost in the last 24 hours, elevating it to $14.9 billion. This positive trajectory has sparked curiosity regarding the driving forces behind ADA’s upward movement during a generally stagnant market period.
Why is ADA Rising?
The recent surge in ADA’s price has drawn significant attention from both investors and analysts. Notably, there has been a marked increase in whale activity, with transactions by major investors skyrocketing from 14.51 million to 110.8 million between July 8 and 9, as reported by IntoTheBlock. This surge follows a dramatic drop from 223.8 million on July 4 to 25 million on July 5, which was then followed by an astounding 1218% increase, further energizing investor sentiment.
These large-scale purchases are seen as part of strategic plans by whales, contributing to heightened demand and, consequently, rising prices for ADA.
ADA Price Outlook
Currently, ADA’s upward momentum is evident in various technical indicators. The Chaikin Money Flow (CMF) stands at a positive 0.07, suggesting an inflow of funds into the market. Additionally, ADA’s Money Flow Index (MFI) is at 51, indicating increasing buying pressure. The Relative Strength Index (RSI) for Cardano is at 52, signifying a buying pressure above neutral levels. Moreover, the liquidation of long positions declined from $2 million to $0, reflecting positive market sentiment and investor confidence.
Key Insights for Investors
Investors can derive the following key insights from the current market trends:
- Increased whale activity signals potential for continued price growth.
- Positive CMF and MFI values indicate strong buying pressure.
- RSI values above neutral suggest sustained investor interest.
- Zero long position liquidation reflects high market confidence.
These factors collectively suggest a favorable outlook for ADA’s price movement.
At the time of reporting, ADA’s price stood at $0.4169, marking a 4.41% increase in 24 hours. If the buying pressure persists, the price could escalate to $0.457, and surpassing this level might push it to $0.521. Conversely, a drop below $0.385 in the daily outlook could invalidate the bullish trend, possibly leading to a movement toward the $0.362 region.