Although the price of Bitcoin has been promising, investors remain unconvinced due to recent fake rallies. As a result, altcoins have not seen the same level of growth. However, if BTC continues to stay strong, many altcoins may begin resistance testing. In fact, ADA Coin, one of the top 10 cryptocurrencies, could potentially double its value.
While the cumulative value of cryptocurrencies fluctuates, ADA Coin has not strayed far from $0.25. Other leading cryptocurrencies like Bitcoin (BTC) and Solana (SOL) have experienced double-digit growth, but ADA Coin has yet to see the expected interest. On April 15, 2023, ADA Coin reached its annual peak at $0.46.
Things changed after April because, as we warned at the time, selling pressure from whales became dominant. We saw that wallets holding 1 million or more ADA took advantage of the price increase for profit. Between April 19 and May 20, whales rapidly sold 1.98 billion ADA Coin.
You can see this clearly in the chart below. The direct impact of whale selling resulted in a 24% loss in price. ADA Coin experienced a rapid decline from $0.46 to $0.35.
However, things may be changing. Investors who believe that the market has bottomed out saw that whales bought 120 million ADA Coin between October 1 and October 20. The current accumulation of whales is approaching the peak seen in April.
For the price to reach $0.46, whales would need to buy an additional 520 million ADA. However, the recent $30 million in purchases may indicate a renewed accumulation that could trigger another price increase.
Another factor that could support price growth is the daily network participation rate. After reaching its annual peak at 135,400 on February 1, the price exceeded $0.4. We have also seen that this metric predicted the fluctuations in July. Since we are currently in a potential bottom area, the price could increase in the event of a recovery. In fact, there is already a recovery in daily active addresses.
From an on-chain perspective, a significant increase in whale holdings and network participation rate could double Cardano prices. The first breakthrough is expected to occur with a close above $0.27. Subsequently, the target areas will be $0.33 and $0.37. If ADA Coin experiences a general rally, its ultimate target will be $0.5.
For now, preliminary signals indicate that ADA Coin may be in the early stages of an uptrend, unless BTC surprises everyone.