Cardano Faces Resistance at $0.30
Cardano (ADA) has had a challenging time overcoming the $0.30 resistance level amidst the rising cryptocurrency market.
On Tuesday, October 31, Cardano’s parent company, Emurgo, announced a significant partnership. Emurgo unveiled its collaboration with the Institute of Blockchain Singapore (IBS), highlighting their commitment to “promote Cardano.” This partnership has the potential to further expand the adoption of products and services hosted on the Layer 1 blockchain.
Online data shows that Cardano’s latest partnership aligns with the ongoing network activity trends. According to Santiment, Cardano has consistently attracted high network activity over the past week. The chart below illustrates that Cardano has witnessed stable network activity, with at least 30,000 unique addresses participating every 9 days since October 23.
The number of active addresses is a daily aggregate of the unique addresses conducting valid network transactions. Visually, the increase in active addresses serves as an indicator of price growth, signaling a growing demand for projects hosted on the blockchain and the underlying native currency.
Notably, historical trends indicate that the last time the Cardano network attracted a minimum of 30,000 unique addresses for a consecutive 9-day period was in July 2023 when the price surged to $0.35. This implies that the current network activity surge on Cardano has the potential to push the price above $0.30.
Whales Have Accumulated 80 Million ADA in 9 Days
Another significant indicator that could potentially drive Cardano’s price above $0.30 in the coming days is the trading activity of whales. According to Santiment, whales (addresses holding 1 million to 100 million ADA) have acquired 80 million ADA coins from October 23 to October 31.
The Whale Wallet Balance data allows real-time monitoring of changes in trading activity by large institutional investors. The chart above reveals that Cardano whales have taken advantage of the cryptocurrency market’s recovery over the past 9 days to accumulate approximately $24 million worth of ADA (ADA/USD ~ $0.30).
Typically, when large investors continue to buy during a recovery phase, it signifies their confidence in the potential for further price increases. If this argument holds, ADA holders may anticipate a decisive breakout above $0.30 in the days to come.
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Price Prediction for ADA: $0.35 on the Horizon
Drawing conclusions from the price indicators analyzed above, Cardano’s price may reclaim the $0.30 territory in the near future. Global On-Chain data, which represents online trends in the historical buying behavior of ADA holders, also corroborates this story. However, it reveals that Cardano is currently trading within two significant support and resistance clusters.
As described below, 105,440 addresses bought 4.08 billion ADA at a maximum price of $0.30, creating an initial resistance level. But if the bullish camp can keep up the buying momentum, they might break through to the $0.35 level as predicted.
Furthermore, the bearish side could challenge this prediction if ADA’s price drops below $0.25. However, the bullish camp might establish a strong support wall around $0.27.
The chart above shows that 361,500 addresses currently hold 5.55 billion ADA purchased at an average price of $0.27. If they HODL, they could potentially thwart any significant price reversal for Cardano.
