ADA volume is increasing significantly, but Cardano price is stuck in a bearish pattern

A famous analyst report This large ADA trading volume grows to over $21.6 billion. He pointed out that such market actions are often representative of institution and whale activity on the Cardano network, suggesting that key players may be bracing for price swings.

“Big ADA trading volume skyrocketed and surpassed $21.6 billion. Such market behavior is often to be depicts the activities of organizations and whales in the ADA network and shows how these actors position themselves their position for price fluctuations”.

Large trades (more than $100,000) are usually made by whales and institutional investors. The total amount that whales and institutional players trade on any given day is determined by the volume of those large trades.

Increased trading volume may indicate increased buying or selling activity by the major players. Whales and wealthy investors are known to accumulate more and buy options during crashes.

ADA is a are among the top assets that whales are hodl

Accordingly WhaleStatsthe top 1,000 BNB wallets they track contain significant amounts of ADA tokens. These top whales in particular have a Cardano token value of almost $11,815,034.

Cardano’s on-chain activity also increased significantly, with the number of new addresses increasing by 167%. IOHK, Cardano’s parent company, discussed earlier this year the potential to attract new users following the launch of new dApps.

IOHK says:

“Now that we are entering the basho phase, we are investing more in optimization and scaling. Build on these platforms and continually increase capacity and throughput to accommodate the growth of the DApp (decentralized application) ecosystem and attract hundreds of thousands of people, then millions of new users active on the platform.”

According to Cardano, 492 projects are currently being built To update the latest from Tim Harrison, IOHK’s Director of Communications.

ADA remains stuck in a bearish pattern

The ADA price action is nowhere near the uptrend as the bulls appear too weak to create a large weekly bullish candle breaking the previous high let alone the previous weeks highs. Adding to this is a death cross as the 55-day simple moving average (SMA) is still trading firmly towards a break below the 200-day SMA.

For now, the $1 dollar will hold but needs outside help like a bailout rally or global markets that can stop worrying about the restrictive central banks and lure investors back onto the playing field.

Technically, ADA doesn’t appear to be too cheap as the bulls are facing increased pressure from bearish signals and $1 is serving as a last line of defense before the price action is likely to collapse. The death cross mentioned above is one of the most dangerous as the 55 SMA is able to cap any upside moves that were shorted with acknowledgment despite a reasonable attempt 4 weeks ago.

Given the current situation, the hawkish stance of central banks remains the focus of concern and it is only a matter of time before the $1 price falls into the hands of the bears. Expect ADA to continue falling to January low of $0.92. If the market suffers from stronger news and a possible war with Russia, a sharp drop towards the monthly S1 at $0.80 and $0.71 is inevitable. This is the level ADA traded last February and will nullify the 2021 uptrend. However, the process will present bulls with an interesting opportunity to regain some of what was lost on the way down.

Weekly ADA/USD chart | Source: TradingView

Since the two main catalysts are the Ukraine-Russia conflict and central banks, one or both can be expected to work well in reverse. If peace talks turn out well or the Fed cautiously tackles inflation and reins in the meantime, expect some solid gains as major bullish candles break into bearish territory. The first would be $1.14, followed by the 55-day SMA and monthly rotation at $1.20. Indeed, a solid break above the 55-day SMA and a 1-week close above it would be perfect to build confidence and context for the start of a longer term uptrend back towards $1.63 and $2.42.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page