Last week, Cardano (ADA) dropped by another 7.5% as it entered its third consecutive week in decline. On-chain indicators, however, show that the Cardano network’s fundamentals remain solid. How long before bullish ADA price predictions invalidate the current bearish trend? The crypto industry’s volatile start to May 2023 has seen Cardano, among other Layer-1 coins, enter a momentary bearish trend. Critical on-chain indicators suggest that there has not been any major deterioration in the fundamental demand for ADA and other crucial projects built on the Cardano network. Is it only a matter of time before the price rally returns? Cardano Transaction Volumes Remain Healthy Cardano (ADA) price has dropped 17% from its 2023 peak of $0.45 on April 15. But interestingly, since then, transaction volumes on the Cardano have not deteriorated.
The last time the Cardano network recorded daily transactions of less than $6 billion was on April 16. Between April 16 and May 7, daily Transaction volume on the Cardano network increased from $5.79 billion to $6.76 billion. Cardano (ADA) Price Prediction May 2023 – Daily Transaction Volume data. Source: Santiment This shows that even as the price has declined in the last three weeks, investors have intensified demand for ADA. As long as the demand remains healthy, it is only a matter of time before the bullish Cardano price prediction is validated. Whales Are Quietly Buying The Dip The mild-accumulation wave among large institutional Cardano investors is another critical factor pointing towards an imminent price rebound. The chart below shows how a cohort of whales with balances of one million to ten million ADA have marginally increased their holdings during the current price downtrend. Between April 27 and May 8, the whales added 10 million ADA coins to their wallet balance. At a current market value of $0.36, the whales have made a fresh investment of $3.6 million. . Cardano (ADA) Price Prediction – May 2023 – Aggregate Exchange Orders. Source: Santiment This mild-accumulation trend suggests that the whales remain confident in the fundamental value of the underlying technology that powers the Cardano ecosystem. Hence, if Cardano Transaction volumes continue to rise and the whales keep buying, the bullish ADA price prediction could soon be set in motion. ADA Price Prediction: Next Rally Could Reach $0.48 On-chain indicators depict that ADA is on course to reach a new 2023 peak of $0.48 during its next price rally. Looking at the aggregate order books of prominent crypto exchanges, the demand for Cardano has now surpassed the market supply.
This means that a price rebound is now on the cards. Analyzing the chart below, bearish traders are prepared to sell 7.6 million coins once ADA gains 10%. This means the ADA bulls will likely face initial resistance around the $0.40 level. But, if the positive Cardano price prediction plays out as expected, the bulls will likely breach that resistance and force a 30% rise above the current prices. At the 30% zone, however, the market supply of 16.13 ADA could finally slow down the rally. Cardano (ADA) Price Prediction May 2023 – Aggregate Exchange Orders. Source: IntoTheBlock Yes, the current bearish trend could linger if Cardano’s price drops by another 5%. But the bullish investors that have placed active orders for 8 million ADA could prevent that. But if that support level does not hold, ADA price could slide 15% further before the next significant buy-wall of 18.36 million ADA comes to the rescue. The post Cardano (ADA) Whales Are Buying, Will Price Remain Bearish? appeared first on BeInCrypto.
Source : [Cardano (ADA) Whales Are Buying, Will Price Remain Bearish?](beincrypto.com/ada-whales-buying-price-bearish-bullish/) by Ibrahim Ajibade - BeInCrypto by Ibrahim Ajibade / May 08, 2023
