Bitrabo Editorial
Cardano (ADA) saw a 5% drop in its price in May, but bullish investors have started June 2023 strongly with increased on-chain activity that could result in a positive performance this month. The launch of the native Djed stablecoin in March 2023 led to rising transactional activity on the Cardano network, reaching a new peak on June 1.
Large institutional investors, or whale investors, have been increasing their trading activity in recent weeks, which could have a significant impact on the price of ADA.
Cardano Transaction Volume has Hit a New Peak
The Cardano blockchain network recorded 102,860 confirmed transactions on June 1, marking a 70% increase from May 1. The total transactions on May 31 were 105,000, which is similar to the heights recorded in December 2022. This rise in economic activity on the network signals that ADA is in demand and could gain enough bullish momentum to surpass the $0.40 resistance level if it can maintain this level of transactional activity.
Whales Are In on The Action
The recent spike in ADA transactions has been driven by large institutional investors. Whale Transactions increased by 200% in May, tracking the number of confirmed transactions that exceed $100,000 in value. This trend has been pivotal to the recent spikes in economic activity on the Cardano network, which could potentially break new ground in the coming weeks if it continues.
ADA Price Prediction: $0.50 Incoming?
IntoTheBlock’s Break-Even Price Distribution data reveals that Cardano could soon reclaim the $0.50 milestone. However, ADA may struggle to break above the initial resistance at $0.40, where 392,400 investors holding 571 billion coins could sell and trigger a retracement. If bullish momentum prevails, these holders could potentially push the rally toward $0.50. On the other hand, a drop below $0.35 could lead to a short-lived bullish Cardano price prediction. Still, 385,400 investors that bought 3.27 billion ADA at an average price of $0.35 could offer support in that scenario. But failure to hold this key support level could force ADA into another downswing towards $0.30.
Disclaimer
As per the guidelines of the Trust Project, this article on price analysis is for informative purposes only and should not be considered financial or investment advice. Bitrabo is committed to accurate and unbiased reporting, though market conditions can change without notice. One must always conduct thorough research and consult with a professional before making any financial decisions.