The crypto market has seen a series of ups and downs lately. While the recent Federal Reserve interest rate hike has had a minor influence on altcoins, unlike Bitcoin, Cardano’s native currency ADA appears to defy the odds. Despite the current downward trend in the market, several factors point to a bullish outlook for Cardano. It is expected that ADA will soon become one of the altcoins to pop up amid the market downtrend and push the altcoin market higher.
ADA whales bring confidence
In a notable change since April, the Cardano network has seen a significant increase in USD-denominated transaction volume. On-chain data from Cardano reveals that trading volume has consistently remained above the $2 billion mark since April 10. During the period between April 10 and May 3, the Cardano network saw a staggering 42% increase in the volume of dollars spent, demonstrating the platform’s growing popularity and growing adoption.
A recent report from Input Output Global, the entity behind the development of Cardano, reveals that the network processed an impressive 65.4 million transactions in the last week alone. However, ADA’s volatility over the past month has raised eyebrows among pundits, even in the face of substantial gains in trading volume.
This dominant trend can be attributed to an increase in whale activity within the network. The accumulation of coins in whale addresses signals an increase in confidence among big players, a factor that frequently triggers bull runs in the market.
Cardano surpasses its own milestones with the introduction of new features. A recent development by Input Output Hong Kong (IOHK), the company responsible for the Cardano protocol, led to the activation of the first Hydra head on the mainnet. This achievement greatly improves the scalability of the proof-of-stake (PoS) network and signals the start of a possible bull run.
ADA price to support near this level
Although the ADA bulls managed to hold the price above the EMA-100, they failed to break the resistance of the EMA-20 trendline at $0.398. The bears are trying to use the bearish sentiment in the market by sending the price below $0.37. However, the bulls have not left play as there is intense buying pressure near $0.37, holding the next bullish ADA targets.
At the time of writing, Cardano is trading at $0.39, gaining more than 2.5% in the past 24 hours. If ADA price takes support at $0.37 and rebounds, it will likely break above the 38.6% Fib channel and reach resistance at $0.41. If ADA continues to see a massive influx of $0.41, it may extend its bullish push.
However, on the bearish side, if the bulls fail to take control near $0.37, the bearish momentum in ADA price will pick up speed. Cardano may touch the level below $0.34.