Over the past 7 days, the price of Cardano has dipped by 4% amid a decline in the altcoin market. However, on-chain data reports that cryptowhale actions could bring ADA back above the $0.40 resistance level.
Transaction volumes on the Cardano network are on the rise
The Cardano network has seen a significant increase in USD transactions in recent weeks. Between April 10 and May 3, it soared 42% and has never dropped below $2 billion in all that time. In comparison, in the first fiscal quarter of this year, ADA transactions exceeded this mark only twice.
The constant growth in the volume of transactions indicates the steady interest of users in the asset. If the uptrend continues, investors can count on a quick price rebound.
The whales are back in the big game
Despite the recent price correction, the Cardano whales look unruffled. Over the past seven trading days, their trading activity has increased by 33%. The chart below shows that from April 28 to May 3, the volume of over $100,000 daily trades rose from $8.07 billion to $10.81 billion.
The constant growth in the volume of transactions indicates the steady interest of users in the asset. If the uptrend continues, investors can count on a quick price rebound.
The whales are back in the big game
Despite the recent price correction, the Cardano whales look unruffled. Over the past seven trading days, their trading activity has increased by 33%. The chart below shows that from April 28 to May 3, the volume of over $100,000 daily trades rose from $8.07 billion to $10.81 billion.
The increase in whale activity should be regarded as a bullish signal, which means that large holders are counting on the growth of ADA.
$0.42 resistance could be critical for ADA
According to In/Out Money data, ADA has upside potential in the direction of $0.45. On the way to this mark, the bulls will face selling pressure from 416,000 addresses holding 5.11 billion coins at an average price of $0.42. However, if they manage to overcome it, Cardano could hit a new yearly high of $0.51.
In case of loss of the current support at $0.37, the initiative will go to the bears. The drop is likely to be prevented by a cluster of 301,000 addresses holding 6 billion ADA. But if this is not enough, the price of the asset is expected to further decline to $0.31.
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