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According to a recent blog post by crypto analytics firm Santiment, so-called whale transactions on the Cardano blockchain have seen a massive spike since the start of February. In the past few weeks, the number of ADA transactions with a USD value of at least $100,000 has frequently hit 2,000 per day. In the last few months prior to February, the number of transactions above $100,000 in value per day had rarely gone above 500.
The spike in ADA whale transactions comes at an interesting time for Cardano. Firstly, the crypto market rally that began earlier this year has, as of Wednesday the 22nd of February, lifted the world’s eighth-largest cryptocurrency by over 50% year-to-date. Meanwhile, a number of interesting Cardano ecosystem development milestones have been hit, including the launch of the highly anticipated overcollaterized USD-pegged algorithmic stablecoin Djed, which is touted as likely to attract new capital inflows to the Cardano ecosystem as Decentralized Finance (DeFi) investors look for new ways to generate yield.
Cardano Price Prediction – Where Next for ADA?
ADA/USD was last changing hands around $0.38 per token, now down about 10% from earlier monthly highs in the $0.42s. Cardano, which is now threatening a break back below its 200-Day Moving Average (DMA), faces selling pressure amid a broad drop in crypto prices on Wednesday.
Crypto is taking its cue from US stocks, which are pulling lower amid 1) further evidence of an oncoming earnings recession in wake of the latest Walmart and Home Depot earnings and 2) ongoing concerns that equity investors had been underestimating the extent to which the Fed will continue with interest rate hikes this year.
ADA bears will now be eyeing a test of the 50DMA in the $0.36s, which also coincides fairly well with this year’s uptrend. If Cardano can find support here, it stands a good chance of rebounding back towards recent highs. If not, a test of a recent double bottom just under $0.3450 is likely.
Is Now the Right Time to Buy Cardano?
“I’d go for ADA at the moment,” said Guy Turner, the creator of the hugely popular crypto news YouTube channel Coin Bureau in a recent interview with The Daily Hodl. Turner noted that, recently Cardano has made a lot of progress, pointing to the Vasil upgrade, before noting that he likes “the fact that there are lots more upgrades scheduled”, including Hydra, which is mostly focused on scaling.
Turner also noted the strength of the Cardano community as a reason why he likes the cryptocurrency. “There’s obviously a really dedicated Cardano community, which I like… And I think that is an increasingly big thing in crypto because these projects… need users, they need communities to survive,” he explained.
ADA Alternative to Consider
ADA is clearly a cryptocurrency with a lot of long-term potential. However, given its somewhat patchy near-term outlook, traders looking for quick gains may prefer to consider other high-potential tokens, such as those being sold in pre-sale by promising up-and-coming crypto projects. We’ve reviewed some of the best candidates in this list of the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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