The recent surge in Cardano (ADA) price, increasing by 17% in one week, has drawn considerable interest. Many ADA investors are now making profits due to certain factors like a significant rise in large investor activity and recent advancements in blockchain technology. Let’s take a closer look at the reasons behind ADA’s increasing price and consider what investors should remember.
Current Market Performance of Cardano (ADA)
Cardano (ADA) price is trading at $0.4183, showing an increase of 4.63%, over the past day. This performance follows a bullish trend, which saw ADA’s value skyrocket by 19% over the past week. However, the previous month has been bearish for the token, dropping in price by 3.31%.
The market cap and trading volume have also seen an increase, reaching $15 billion and $329.2 million, over the past 24 hours respectively.
Why is Cardano (ADA) Rising?
Various factors are behind ADA Price Surging.
1. Whale Activity
The rise in ADA’s price is due to various factors, the most significant being a noticeable rise in whale activity. IntoTheBlock data shows a significant increase in transactions made by prominent investors. Transactions surged from 14.51 million ADA to 110.8 million ADA within a 24-hour period on July 8th and 9th.
This increase came after a sharp decline from 223.8 million ADA on July 4 to 25 million ADA on July 5, showing a massive 1218% rise. Massive acquisitions are included in the strategic agendas of big investors, boosting the demand for ADA and subsequently increasing its price.
2. Cardano’s New Upgrade
In addition to whale activity, Cardano has recently undergone a crucial upgrade on its mainnet. The latest upgrade, v6.5.0, introduces several enhancements that contribute to the blockchain’s robustness and scalability.
According to Cardano Foundation’s technical director, Ktorz, this upgrade is compatible with Cardano node 9.0.0 and includes the Ogmios upgrade. This upgrade features a new ledger state query for the protocol’s treasury and reserves.
It also includes new protocol parameters, such as the reference script fee and maximum size. These improvements are designed to address potential bottlenecks and support Cardano’s progression towards complete decentralization.
Moreover, the completion of the Chang hard fork on July 9 has bolstered investor confidence in Cardano’s technological advancements and future potential.
The hard fork, combined with the ongoing development and new functionalities introduced by the v6.5.0 upgrade, underscores Cardano’s commitment to enhancing its blockchain infrastructure and scalability.
3. On-Chain Transaction Volume: Profit vs. Loss
ADA’s daily on-chain transaction volume ratio between profit and loss acts as a crucial signal of market sentiment. This metric of 1.05 indicates that for every loss-making transaction, there were 1.05 profitable transactions.
This optimistic proportion indicates an overall positive sentiment among Cardano (ADA) holders and traders.
4. Technical Indicators Supporting Cardano (ADA)’s Rise
Presently sitting at 53.66, the Relative Strength Index (RSI) shows that there is more demand for buying than for selling. The RSI is an important measure that evaluates market conditions. It signals overbought levels with values above 70 and oversold levels with values below 30.
The current RSI of ADA indicates increasing demand and indicates that the price increase is supported by significant buying interest.
Conclusion
Cardano (ADA) price surge is supported by higher levels of whale activity and major technological updates. Investor confidence and blockchain capabilities were boosted by the recent v6.5.0 upgrade and Chang hard fork. Investors should keep an eye on important technical indicators and updates to stay informed about possible future price movements as ADA continues to rise. By combining strategic whale transactions with ongoing improvements, ADA is set up for further growth in the changing cryptocurrency market.
The post Cardano (ADA) Price is Rising 17%; What Investors should know appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed