Aaryamann Shrivastava
FXStreet
- Cardano price fell to $0.330, the zone that was last tested back in January 2021.
- Over the last few days, ADA price recovered by 23%, turning $0.409 into support.
- Despite not much growth in investor count, transactions on-chain have been consistently rising.
Cardano price has been terrifying investors and traders worldwide after dipping significantly recently. Although it gained back all that it lost in the following couple of days through the broader market bullish cues and the increase in investors' activity. However, it still has a long way to recovery.
Cardano price makes a critical jump
Cardano's price climbed the charts by 23.53% to close above the critical support level of $0.409 yesterday before slipping slightly below it today, trading at $0.405. Over the last ten days, this rise came after the cryptocurrency fell through the support level to hit $0.330. Establishing it as the new low of 2022, ADA was last seen at this point in January 2021.
But the improving situation of the markets was a crucial factor in the altcoin's recovery. However, Cardano is yet to note whatsoever recovery.
As per the Fibonacci retracement from $1.213 to $0.384, the first sign of recovery is at $0.580. This price point coincides with the 23.6% Fib line and the bounce-off point for breaching through the resistance block.
Marked from $0.595 to $0.747, this area has been tested as resistance multiple times since April 2022 but breached only once. Rising above this would place ADA into a recovery rally which could be supported by the growing participation of Cardano investors.
ADA/USD 1-day chart
Cardano investors make an appearance
After months of minimal activity, ADA holders became active on the network again, which was evident in the number of active addresses. The figure rose from 56,000 to 72,000 in the span of two weeks.
-638028563161056405.png)
Cardano active investors
However, the number of transactions conducted on-chain grew by a much higher margin. Rising from 61,000 transactions to 96,000 transactions, the network registered a 57% growth. This is despite just a 28.5% increase in investor presence on-chain.
Cardano network transactions
Thus, Cardano holders are engaging more on-chain, which is a positive sign for the price. This development bore results with the 23% rise and would continue to do so if the conditions persist.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
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.