Cardano (ADA) has been making waves in the cryptocurrency market, recording a significant 20.29% price increase over the past seven days. This surge is in line with the current green movement seen in most cryptocurrencies, with ADA trading volume spiking since it hit a low of $0.335 on July 8. The impressive price performance of ADA has allowed it to outperform many other large market-cap cryptocurrencies.
On-Chain Transactions
The primary reason behind ADA’s price surge can be attributed to the large on-chain transactions that have taken place in the past week. This increased activity on the Cardano blockchain has helped to push the price of ADA higher, with the cryptocurrency currently outperforming the market. Analysts believe that ADA could continue this upward trend throughout the weekend and into the coming week.
The uptick in ADA’s price began on July 8, coinciding with the announcement of important updates to the upcoming Chang hard fork, which represents a pivotal moment for the Cardano blockchain. Cardano founder Charles Hoskinson revealed in an AMA broadcast that the upgrade to node 9.0, essential for the Chang hard fork, is nearly complete. This development has instilled a positive outlook for ADA among investors and traders.
Recent price dynamics indicate that ADA has maintained a bullish sentiment, with the bulls currently in control of the market. At the time of writing, ADA is trading at $0.4249, marking a 32% increase from the monthly low recorded on July 5. On-chain data from IntoTheBlock reveals a significant increase in whale activity on the Cardano blockchain, with the number of daily transactions exceeding $100,000 rising by 160% throughout the week.
The increase in accumulation by Cardano whales has contributed to a bullish sentiment for ADA, fueling the price surge. If this trend continues, it is possible to see the large holder netflow turning positive in the larger 30-day and 90-day timeframes. In a bullish scenario, ADA could sustain the price uptick in the coming week, especially as the overall crypto market begins to show positive signs.
However, failure to break above minor resistance at $0.43 could lead to a bearish scenario, causing ADA to reverse its recent gains. The price movement of ADA over the weekend will be crucial in determining its performance in the following week. A successful break above $0.43 could pave the way for ADA to test another resistance level around $0.515, where a substantial number of ADA addresses are poised to turn a profit.