Cardano Bucks Bears As Large Transactions Climb To $10 Billion, Can This Drive Price To $1?
The Cardano decline in the past week seems to be coming to an end, as evidenced by on-chain data. While the overall crypto market has been in a slump, Cardano is starting to buck the trend. ADA, Cardano’s native token, has seen a huge surge in on-chain transactions from large holders, indicating sporadic activity and interest in the blockchain. Notably, transaction data shows that Cardano has registered over $10 billion worth of large transactions in the past 24 hours, representing a 26% increase within the time frame. Furthermore, this puts the worth of ADA large transactions at $32.54 billion in the past seven days.
Cardano Large Transactions Climb To $10 Billion in 24 Hours
Cardano, like most altcoins, has been going through a turbulent price action since the beginning of the month. This decline was further exacerbated by Bitcoin’s drop below $65,000 in the past 48 hours. However, Cardano now seems to be building bullish momentum, particularly from large holders. In the past 24 hours alone, 27.17 billion ADA, amounting to $10.43 billion, was traded between large holders, according to ITB.
Interestingly, the number of Cardano large transactions jumped to 851 in the past 24 hours, which is a 107% increase from 410 of such transactions recorded on June 16th.
IntoTheBlock’s large transaction metric measures the number of transactions larger than $100,000 on the blockchain. It’s worth noting that while activity from this cohort has grown in the last 24 hours, it remains considerably below the transaction peak of 95,730 set on May 29.
Can The Activity Push ADA To $1?
With activity from large holders starting to increase, a natural question is whether this can translate to significant price appreciation for ADA. Many analysts think ADA still has plenty of room to run if the crypto market recovers and turns bullish again. Cardano, for one, now has its 30-day MVRV ratio at -12.6%, which is a very bullish indicator for a bounce in the short term.
At the time of writing, ADA is trading at $0.3915 and is up by a meager 0.45% in the past 24 hours. Interestingly, recent price action shows ADA bouncing off a 7-month low of $0.3685 on June 18.
The journey to $1 seems tough at the moment, and there are many price resistance levels to overcome. The first step is to push above the $0.400 resistance level. Failure to push above could lead to the start of another decline to $0.37. However, ADA reached an all-time high of $3.10 in September 2021, so reclaiming $1 is not yet out of the game.