Cardano price is up +14% since the start of April. On-chain data suggests that ADA is still underbought as the current bullish rally could lead the price towards $0.45.
Cardano (ADA): towards a continuation of the bullish rally?
Cardano (ADA) price has performed +14% over the past two weeks and finally broke above the $0.40 resistance for the first time since February. On-chain data analysis suggests that multiple whales are accumulating the asset and continue to fuel the ongoing bullish rally. April 10 Technical Analysis indicated a new rise to come on the coursebut how big will the next move on the asset be?
Cardano has been making waves in recent weeks by introducing new features and fixing several bugs. According to on-chain data from the network, the launch of the stablecoin DJED seems to draw investors’ attention to ADA.
Lace is out! https://t.co/4JIYSogGeO
— Charles Hoskinson (@IOHK_Charles) April 11, 2023
Whales, driving the rally on Cardano
According to data from Santiment, the whales began accumulating ADAs a few days after the launch of the stablecoin GRANDFATHER by the foundation. The chart demonstrates how whales holding balances of 1 million to 10 million ADA started buying in early February. Between February 2 and April 11, they accumulated 210 million tokens worth around $84 million.
When crypto-whales accumulate a cryptocurrency in particular, it testifies to their confidence in the future of the project. This increased demand puts upward pressure on the price and may cause other retail investors to go bull. The buying and selling of these whales has been closely correlated to the price action of the asset since August 2022. ADA could see a further rise if this trend continues in the coming weeks.
The ratio NVT (Network Value to Transaction) confirms this upward trend. Data from Santiment shows that despite breaking the resistance at $0.40, ADA is still underbought at current prices. The chart shows that the NVT ratio has flattened since the beginning of February. Between February 1 and April 11, the NVT ratio fell by 84%, from 58.82 to 9.25.
The NVT ratio assesses the value of a blockchain relative to the volume of trading activity on that network. It is obtained by dividing the market capitalization of the asset by the daily trading volume of the network. When trending down, it indicates that the token is undervalued compared to current prices.
The accumulation of whales coupled with the underbought nature of Cardano could soon trigger new rallies on the asset.
Analysis on Cardano: a rally towards the resistance of $0.45
The index GIOM for IntoTheBlock indicates that Cardano may soon reach the $0.45 area. Bulls can take over if the price of the asset rises above $0.42 (where 179,000 addresses hold 2.8 billion tokens in this zone). If ADA exceeds this zone, it could revisit the $0.45 zone, an area where 287,000 addresses have bought 1.87 billion tokens.
The bears could halt the rally if ADA fails to maintain its current support at $0.39 (where 179,000 addresses hold 2.8 billion tokens). If the bears break this support, Cardano could revisit the $0.35 area.
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Source : TradingView, IntoTheBlock, Saintly
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