Cardano (ADA), moving in parallel with the recent surge in Bitcoin (BTC), began its ascent after January 29, when Bitcoin surpassed $43,000. On the other hand, ADA has been one of the best-performing cryptocurrencies in the top 10 over the last 24 hours. As of the time of writing, ADA is trading above $0.53, marking an increase of over 6%. Meanwhile, Bitcoin’s price is trading around $43,300, indicating an increase of over 2%.
Cardano (ADA) Coin Analysis
Previous analysis of Cardano (ADA) suggested that the altcoin was on the verge of a significant recovery. A look at the trading volume shows that, according to Santiment, Cardano’s transaction volume rose from $294.27 million to $538.56 million, signaling growing investor interest.
The market’s price increase may indicate a strong position for buyers. On-chain data suggests that if the number of orders placed by buyers continues to rise, ADA could maintain its upward momentum. However, if investors withdraw their support prematurely and turn to profit-taking, a decline in ADA’s price could be observed.
The 4-hour ADA/USD chart shows indicators continuing to signal an uptrend.
Depending on the buyers’ return, ADA could potentially revisit the psychological level of $0.55. Investors looking for reasons to believe in this possibility are turning their attention to the Moving Average Convergence Divergence (MACD), which at the time of writing, was at 0.0032. Such a chart could fuel expectations for an uptrend.
On the other hand, the token’s Awesome Oscillator (AO) was also trending upwards. At the time of writing, it stood at 0.0373, which could be interpreted as ADA gaining upward momentum. If ADA can move above $0.55 and close there, a 10% increase could follow.
If the entire scenario unfolds, ADA could reach the $0.60 level. Nevertheless, a potential rise to $0.65 may not be achievable for ADA in the coming days.
The Future of ADA
In addition to technical indicators, another significant point emerged specifically regarding whales. Whales continue to make some extraordinary movements on the chain.
According to data provided by Santiment, there is a noticeable increase in whale transactions exceeding $100,000. The same can be said for transactions valued over $1 million.
These movements could be interpreted as a sign that major players are turning their attention back to Cardano. If this trend continues, an increase in ADA’s price could be observed.
