The crypto market has seen a series of ups and downs in recent times. While the Federal Reserve’s recent interest rate hike has had a minor influence on altcoins, unlike Bitcoin, Cardano’s native currency, ADA, appears to be defying the odds. Despite the current market downtrend, there are several factors pointing towards a bullish outlook for Cardano. It is expected that ADA will soon become one of the altcoins to surge amid the market’s downtrend and push the altcoin market higher.
ADA Whales Bring Confidence
In a noteworthy shift since April, the Cardano network has seen a significant surge in the volume of USD-denominated transactions. On-chain data from Cardano reveals that the Transaction Volume has consistently remained above the $2 billion mark since April 10th. During the period between April 10th and May 3rd, the Cardano network experienced a staggering 42% increase in the volume of dollars spent, showcasing the platform’s growing popularity and increasing adoption.
A recent report from Input Output Global, the entity driving Cardano’s development, reveals that the network has handled an impressive 65.4 million transactions over the past week alone. However, ADA’s volatility over the past month has raised eyebrows among experts, even in the face of substantial gains in transaction volume.
This prevailing trend can be attributed to a surge in whale activity within the network. The accumulation of coins in whale addresses signals an upswing in the confidence of larger players, a factor that frequently sparks bull runs in the market.
Cardano is surpassing its own milestones with the introduction of new features. A recent development from Input Output Hong Kong (IOHK), the company responsible for the Cardano protocol, has led to the activation of the first Hydra head on the mainnet. This achievement significantly enhances the scalability of the proof-of-stake (PoS) network and signals the beginning of a potential bull run.
ADA Price To Take Support Near This Level
Though the ADA bulls have successfully maintained the price above the EMA-100, they have failed to break the resistance of the EMA-20 trend line at $0.398. Bears are trying to utilize the bearish sentiment in the market by sending the price below $0.37. However, the bulls have not left the game as there is intense buying pressure near $0.37, holding ADA’s upcoming bullish goals.
As of writing, Cardano trades at $0.39, gaining over 2.5% in the last 24 hours. If ADA’s price takes support at $0.37 and rebounds, it will likely break above the 38.6% Fib channel and hit resistance at $0.41. If ADA continues to witness a massive inflow from $0.41, it can extend its bullish surge.
However, on the bearish side, if bulls don’t gain control near $0.37, ADA price’s bearish momentum will take speed. Cardano may touch the bottom level at $0.34.
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As the crypto market remains in a steep decline, Cardano is offering a ray of hope with its bullish outlook. The cryptocurrency has risen in prominence over the last few months due to its active development team, collaborations, and partnerships.
Cardano, or ADA as it is commonly referred to, is a Proof-of-Stake blockchain platform that utilizes a unique consensus protocol to process secure, immutable transactions. It is designed to facilitate smart contracts, decentralized applications (dApps), and a host of other features.
Cardano’s positive performance comes despite the broader market decline, fueled by various factors such as negative sentiment in the cryptoverse, regulatory uncertainty, and macroeconomic headwinds. The altcoin rose by more than 20% over the last few days and is currently trading at around $0.053.
This uptrend comes on the heels of multiple announcements from the Cardano Foundation. It recently unveiled plans to collaborate with both Microsoft Azure and Amazon Web Services to further develop the blockchain. Other partnerships include the United Nations, and Ernst & Young, one of the world’s largest accounting firms.
These developments have helped to boost Cardano’s long-term potential and the community’s confidence. Investors now see Cardano as a “top tier” blockchain and believe that it could experience further gains in the future.
Furthermore, Cardano has also been upgraded to version 1.5 of its protocol which brings improved scalability and makes it easier to integrate with other projects. As a result, it could be a valuable asset in a diversified crypto portfolio.
Cardano’s bullish outlook is particularly promising given the challenging environment in the crypto market. If the altcoin continues to rise, it could be an indication that the market is on the cusp of a major rally.