After the announcement of the Federal Reserve’s interest rate decision, the altcoin market became active. While the Fed kept the interest rate steady for the third consecutive time, it signaled that there could be three rate cuts in 2024. Led by Bitcoin (BTC), altcoins, particularly Cardano (ADA), entered into a strong price increase cycle. ADA’s price has risen by 18% in the last 24 hours, making it the best performer among the top ten cryptocurrencies. At the time of writing, ADA is trading at $0.6516.
Cardano’s Price Rally and Whale Activity
Unlike other altcoins and peers, Cardano’s ADA managed to shake off the selling pressure at the beginning of this week. As a result, ADA’s weekly gain reached an astonishing level of 47%. Furthermore, the altcoin’s gains since the beginning of this month have exceeded 65%.
Whales are currently quite active on the Cardano network. According to data provided by the on-chain data platform IntoTheBlock, there has been a significant increase in large transactions on the network, exceeding $1.5 billion in the last 24 hours.
Typically, in transactions each valued at least $100,000, this increase has raised ADA’s total volume from $17.96 billion to $19.47 billion. The increase in large transactions correspondingly led to a rise in the volume of Cardano tokens. The volume of Cardano tokens increased from 32.32 billion ADA to 33.66 billion ADA.
ADA Price Expectations
The price of Cardano’s ADA, which dropped to $0.55 at the beginning of the week, has quickly recovered from the selling pressure. ADA recently made a significant break from the resistance trend line, signaling a potential upward trajectory. If market conditions continue to remain positive, the post-breakout rally is expected to continue to key levels, particularly $0.737 and $0.87, providing a potential growth of 35%.
In addition to the increase in price and market value, there has been a notable increase in Cardano’s trading volume. After ADA surpassed the $0.50 level, the altcoin’s decentralized exchange (DEX) volume exceeded $12 million. Data from DefiLlama shows that on December 9th, Cardano DEXs reached a 24-hour trading volume of $50 million, recording a significant weekly increase of 140%.
