2023-8-2 17:25 |
Cardano (ADA) retraced toward $0.30 on Wednesday, Aug 2, following volatile fluctuations in the altcoin market. Can Cardano whales prevent a drop below the $0.30 support level amid slowing network traction?
Cardano witnessed considerable price and network activity spikes in the first half of July. This could be attributed to the exchange re-listings and surge in investor confidence in the aftermath of XRP’s victory against the SEC.
However, over the past two weeks, Cardano network activity has steadily declined.
Cardano Network Usage is Currently in DeclineThe intense volatility in ADA prices in the past week can be attributed to the decline in network activity. Evidently, so, Cardano had attracted 77,291 active users on July 10. But since, the Daily Active Addresses (DAA) has declined progressively, hitting 36,920 active users at the close of August 1.
This represents a 52% decline in network demand which is highly concerning for bullish investors.
Cardano Whales Battle to Prevent ADA Price Drop | Daily Active Addresses, August 2023. Source: SantimentThe Daily Active Addresses metric evaluates the blockchain network’s user activity by aggregating the daily number of unique wallet addresses interacting.
Strategic investors interpret a decline in DAA to mean that a lesser number of mass market users are interested in deploying transactions on the network.
With the dwindling demand, it’s no surprise that the ADA price has also been in a downtrend since mid-July.
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Cardano (ADA) Price Prediction 2023/2025/2030
Whale Investors are Offering Strong Support at $0.30With retail users taking the back seat, Cardano whale investors have been intensifying their trading activity to avoid a sharp price decline. The chart below illustrates that whales holding 1 million to 10 million ADA balances have continued to stack up their bags since mid-July.
Despite the ongoing bearish price trend, cumulatively, the whales added 150 million ADA to their wallet balances between July 14 and August 2.
Cardano Whales Battle to Prevent ADA Price Drop | ADA Whale Transactions, August 2023. Source: SantimentWith ADA price currently sitting at $0.30, the newly-acquired 150 million coins are worth $45 million. This large volume of inflows within two weeks means that the Cardano whales have maintained a positive outlook.
In conclusion, the whales appear to be making desperate efforts to keep the ADA price above the $0.30 support and avoid a network-wide panic sell-off. But without sustained network demand from increased transactional activity, the whales could soon run out of steam.
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ADA Price Prediction: Neutral Consolidation around $0.30To further confirm the neutral price outlook, Cardano is trading right between two significant supply walls. As seen below, 50,840 addresses have bought 1.88 billion ADA at an average price of $0.29. This could form a massive support region for the ADA price in the coming days.
Cardano (ADA) Price Prediction | IOMAP, August 2023. Source: IntoTheBlockConversely, there is a relatively comparable buy-wall at the $0.32 resistance territory. The 121,000 addresses holding 1.14 billion ADA at that average price point could prevent a breakout.
Hence, without a significant momentum swing, ADA price will likely continue to consolidate within the $0.29 to $0.32 territory in the coming days.
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The post Can Cardano (ADA) Whales Keep Price Above $0.30 as Network Activity Declines? appeared first on BeInCrypto.
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