- Cardano price is likely to observe a 10% rally in its price with a $0.32 target, according to technical analyst Dan Gambardello.
- USD Tether reserves on exchanges have hit a historical all-time high as the stablecoin’s liquidity climbs in the crypto ecosystem.
- Cardano’s on-chain metrics, daily active addresses and social dominance support experts’ thesis of a rally in ADA price.
Dan Gambardello, a crypto expert and analyst, told his 242,400 followers on Twitter that Cardano price is likely to witness a 10% rally. The expert set a $0.32 target for ADA price in the event of a rally in the altcoin.
The rising liquidity from USD Tether flooding the crypto market and bullish on-chain metrics could act as catalysts for Cardano price rally in the short term.
Also read: Cardano Price Prediction: ADA bulls assure another 20% gain for patient holders
Three catalysts likely driving Cardano price rally
On-chain metrics daily address activity, trade volume, accumulation by large wallet investors and the rising social dominance of Cardano have painted a bullish picture for ADA price. An increase in daily address activity and trade volume signals an increase in adoption and utility of the asset among holders.
Typically, a spike in these metrics is associated with an upcoming rally in the price.
%20[18.31.48,%2004%20Jul,%202023]-638240758340132690.png)
Daily active addresses in ADA, Volume vs price
Data from crypto intelligence tracker Santiment reveals that spikes in daily active addresses is associated with a rally in ADA, as seen on three previous instances. In week 2, 3 and 4 of June, rising address activity was followed by an increase in Cardano price. If the trend repeats itself, ADA price is likely to rally in the short term.
Moreover, whale accumulation, considered a typical indicator of an upcoming rally in an asset, picked up pace in ADA. Whales holding between 1 million and 10 million ADA tokens have scooped up more Cardano tokens between July 2 and 4, as seen in the chart below.
%20[18.31.54,%2004%20Jul,%202023]-638240758738932771.png)
Whale wallet holdings vs ADA price
Social dominance, a metric that tracks the mentions of an asset across social media platforms like Twitter, is associated with recoveries in crypto prices. ADA social dominance climbed consistently, between July 2 and 4, and the rise in the metric is followed by an uptick in price as seen in the chart below.
%20[18.32.04,%2004%20Jul,%202023]-638240759135563377.png)
Social dominance vs ADA price
Furthermore, Tether reserves on exchanges have hit an all-time high, and this is another likely contributor of recovery in assets that have suffered a decline in June 2023.
Stablecoin exchange reserves dominance
After the Securities and Exchange Commission’s (SEC) crackdown on crypto, ADA price suffered a steep decline. ADA price bled 30% from $0.37 to $0.26, between June 5 and 15, in a ten-day timeframe of the SEC crackdown on crypto.
Tether’s infusion of liquidity in the crypto ecosystem could drive a recovery in ADA price by absorbing selling pressure on the altcoin and representing demand for altcoins like Cardano.
Expert predicts 10% price rally in Cardano
Dan Gambardello, crypto analyst and pro-ADA expert, predicted a rally in Cardano in his recent YouTube video. The expert set a $0.32 bullish target for Cardano. Find detailed price targets in the video below:
At the time of writing, Cardano is trading above $0.29, having already recovered over 10% from last week's lows.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.