Cardano whales accumulate to the ADA Eyes $0.75 milestone.
- 78% of ADA wallets are holding unrealized profits, with weekly losses of $102.38M.
- Cardano funds 300 projects aimed at innovation and ecosystem growth.
- ADA’s recent surge to $0.6994 suggests resilience, breaking the $0.63 resistance level.
Cardano (ADA) has been in the spotlight recently due to market action showing a downward trend in ADA holders. On-chain data this week revealed a slew of lost transactions within the Cardano network, overshadowing profitable transactions, especially when juxtaposed against giants like Ethereum and Bitcoin. Despite this, nearly 78% of Cardano wallets still boast unrealized profits, painting a complicated picture of the current state of the assets.
Challenges facing Cardano holders
Recent analysis shows that Cardano’s on-chain metrics indicate difficult times for holders. Last week, a loss of $102.38 million occurred, signaling a selling phase. However, hope remains as most ADA wallets are still in the green regarding unrealized profits, suggesting resilience within the Cardano community.
Whale activity was also a topic of interest and saw a rapid increase, with transactions exceeding $100,000. These trends are often associated with significant movements in the price of Cardano, implying strategic accumulation by large investors during price declines. Historically, this pattern has preceded price recovery phases, suggesting there may be a bullish outlook for ADA despite the current sell-off signs.
Comparative analysis of Ethereum and Bitcoin
But things get more interesting when we compare Cardano’s on-chain activity to that of Ethereum and Bitcoin. Importantly, Cardano’s higher loss transaction rate stands in stark contrast to the profitable transactions that dominate the other two networks. As a result, these differences highlight the unique challenges within the Cardano ecosystem, especially during a week in which Cardano holders suffered more losses than gains.
At the same time, ADA’s previous price resistance level was $0.63, with analysts suggesting that if it crosses this threshold, it could go all the way to $0.75 without any major hurdles. Moreover, this outlook suggests fundamental strength that could support a price rebound, aided by the fact that a significant portion of Cardano wallets remain profitable.
However, bullish momentum negating the bearish rally of the past 24 hours led to a breakout of the resistance level, pushing ADA to a one-day high of $0.6994 before facing resistance, according to CoinStats data. ADA was trading at $0.6927 at press time, surging 9.87% above the support level. At the same time, market capitalization and 24-hour trading volume increased 9.27% and 158.85%, respectively, to $24,570,957,787 and $1,770,331,862.
ADA/USD 24-hour price chart (Source: Coin Statistics)
Expert insights and predictions
Amid these developments, Dan Gambardello, a prominent figure in the Cardano community, expressed optimism about ADA. His forecast suggests that there is a possibility of a rise above $1, supported by minimal resistance going forward. These predictions are consistent with Cardano’s historical price movements, which have seen its value fluctuate dramatically since its inception.
However, Gambardello’s perspective introduces a caveat regarding the timing of ADA’s rise, especially in relation to the upcoming Bitcoin halving event. Although he is optimistic about the long term, he tempered his immediate expectations, suggesting that a $1 rise in ADA may not be in line with the halving schedule.
Further complementing Cardano’s prospects is its ongoing commitment to ecosystem development. Blockchain’s recent announcement that it will fund 300 projects through Project Catalyst Fund 11 highlights Blockchain’s commitment to fostering innovation and real-world applications on its platform. These initiatives will be pivotal to long-term growth and could have a significant impact on Cardano’s market position.
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Source: https://coinedition.com/will-whale-accumulations-prompt-a-cardano-ada-price-recovery-eyes-set-on-1/
