Following the market’s vertical drop, today’s rise in Cardano (ADA) pleased investors. ADA’s price increased by 17.35% over the past seven days. On the other hand, trading volume rose by 14.11% in 24 hours, reaching $339 million. According to data provided by CoinMarketCap, Cardano’s market value increased by 4% in the last 24 hours, reaching $14.9 billion. So why is ADA rising despite the prevailing market downturn?
Why is ADA Rising?
The price fluctuation led investors and market analysts to scrutinize ADA. During this period, there was a clear increase in ADA’s whale activities. Data provided by IntoTheBlock showed that transactions by large investors rose from 14.51 million to 110.8 million between July 8 and 9.
After a decline from 223.8 million on July 4 to 25 million on July 5, the subsequent value increase of 1218% excited investors.
The rise in whale purchases can be interpreted as part of their forward-looking plans. This increase in whale activity also boosted demand for ADA, raising prices.
ADA Price Outlook
As of the time of writing, ADA’s rise was reflected in the charts. The Chaikin Money Flow (CMF), which indicates cash inflow and outflow in a cryptocurrency, showed a positive 0.07 for ADA. This can be interpreted as an inflow of funds into the market for purchasing.
On the other hand, ADA’s Money Flow Index (MFI) was at 51, indicating an increase in buying pressure.
The Relative Strength Index (RSI), closely monitored by market followers, was at 52 for Cardano, indicating a buying pressure above neutral.
The liquidation of long positions fell from $2 million to $0 at press time. The drop suggested positive market sentiment with investor confidence in the future potential of altcoins.
Will ADA’s Price Rise?
ADA rose to $0.4169 at press time after a 4.41% increase in 24 hours. If the increasing buying pressure continues, it could lead to a price rally.
If the upward movement continues, the target value will be $0.457. If this level is surpassed, the price could rise to $0.521.
Conversely, if the daily outlook shows a drop below $0.385, the upward thesis may be invalidated, and a move towards the $0.362 region may begin.
