The crypto market has experienced a series of ups and downs in recent times. While the recent rate hike by the Federal Reserve has had a minor impact on altcoins, unlike Bitcoin, Cardano’s native currency, ADA, appears to be defying expectations. Despite the current downtrend in the market, there are several factors pointing to a bullish outlook for Cardano. ADA is expected to soon become one of the altcoins to rise amid the downtrend of the market and push the altcoin market higher.
ADA whales inspire confidence
In a notable shift since April, the Cardano network has seen a significant increase in the volume of USD-denominated transactions. On-chain data from Cardano shows that transaction volume has remained consistently above $2 billion since April 10. In the period between April 10 and May 3, the Cardano network experienced a stunning 42% increase in the volume of dollars spent, demonstrating the platform’s growing popularity and increasing adoption.
A recent report from Input Output Global, the entity driving Cardano’s development, reveals that the network handled an impressive 65.4 million transactions in the past week alone. However, ADA’s volatility over the past month has raised eyebrows among pundits, even despite the significant gains in trade volume.
This prevailing trend can be attributed to an increase in whale activity within the network. The accumulation of coins in whale addresses indicates a rebound in confidence from larger players, a factor that often triggers bull runs in the market.
Cardano surpasses its own milestones with the introduction of new features. A recent development from Input Output Hong Kong (IOHK), the company responsible for the Cardano protocol, has led to the activation of the first Hydra head on the mainnet. This achievement significantly improves the scalability of the proof-of-stake (PoS) network and signals the start of a potential bull run.
ADA price to get support near this level
While the ADA bulls have successfully maintained the price above the EMA-100, they have failed to break the resistance of the EMA-20 trendline at $0.398. Bears are trying to take advantage of the bearish sentiment in the market by sending the price below $0.37. However, the bulls have not left the game as there is intense buying pressure near $0.37, which is holding ADA’s impending bullish goals.
At the time of writing, Cardano is trading at $0.39, up more than 2.5% in the past 24 hours. If the price of ADA gains support from $0.37 and rebounds, it is likely to break above the 38.6% Fib channel and reach resistance at $0.41. If ADA continues to witness massive inflows from $0.41, it may extend its bullish rise.
However, on the bearish side, if bulls fail to gain control near $0.37, the bearish momentum of the ADA price will accelerate. Cardano may reach the lowest level at $0.34.