Cardano (ADA) has been making waves in the crypto market, with a recent surge in whale activity leading to $6.08 billion in large transactions over the past day. This staggering movement, amounting to 17.71 billion ADA, has sparked heightened trading interest among big players. While this increased activity can signal bullish momentum, investors may wonder if caution is needed.
ADA On Whale Alert
With Bitcoin (BTC) consolidating, investors have seemingly shifted focus to altcoins like Cardano. ADA has seen a 10% price increase over the past week, reflecting strong market confidence. However, data from IntoTheBlock has revealed an unexpected twist. Despite the rising price, large ADA holders have been offloading their assets, with a massive 219 million ADA flowing into exchanges—a whopping 606% increase from the previous day.
This significant influx of ADA into exchanges typically signals potential selling pressure. Still, bulls were relieved as Bitcoin hit $58,000, while a key inflation index showed a 2.5% drop, raising hopes for an interest rate cut. These positive macroeconomic indicators helped absorb the selling pressure, allowing ADA’s price to rise by 2% to $0.3601 at press time.
While Cardano has experienced similar gains in the past—such as when Bitcoin reached $64K after consolidating for 13 days—this time, there’s a feeling of uncertainty.
September Roadmap- A Catalyst for ADA’s Growth
Cardano’s September roadmap has been a major catalyst for the recent surge in activity. The network kicked off the month with the Chang upgrade, furthering its path toward full decentralization. This upgrade has reinvigorated the Cardano ecosystem, resulting in its highest number of daily active wallets in 180 days, with around 40,000 wallets recorded.
Moreover, the launch of the Snek-Fun memecoin has driven additional network activity, leading to the creation of over 2,200 coins and $4.5 million in ADA trading volume within its first day. These developments have significantly impacted ADA’s value, bringing around 200,000 addresses from a loss position into profit, collectively holding approximately $4 billion worth of tokens.
If the bullish momentum continues, Cardano could push another 400,000 addresses into profit, especially if ADA tests its next key resistance level at $0.39. However, this scenario hinges on several factors, including whale activity and the broader market sentiment.
Can Cardano Break Through $0.39?
The $0.39 resistance level will be the next major test for ADA bulls. For a successful breakout, bears would need to capitulate, allowing the bullish trend to take full control. Encouragingly, Cardano’s weighted sentiment has remained positive, peaking a day after the Chang upgrade.
Still, there are signs of potential turbulence. The 180-day mean coin age and Mean Dollar Invested Age (MDIA) have dropped, suggesting an uptick in selling or profit-taking. While a bullish breakout is the ideal outcome, a minor pullback seems more likely, given the current market conditions.
Also Read: Cardano (ADA) Eyes 70% Surge – Surpasses $0.30 Support, Key Resistance At $0.39
Ultimately, ADA’s price movement remains closely tied to Bitcoin’s trajectory. Without a boost from BTC, a pullback could be in store. Short-term holders who have recently turned a profit may also consider selling if market volatility persists through September.
Cardano’s recent surge in whale activity and network upgrades has reignited investor optimism. However, with profit-taking by large holders and the looming $0.39 resistance, ADA’s path forward remains uncertain. Investors should keep an eye on Bitcoin’s performance and be prepared for potential market volatility in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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