Cardano (ADA) price demonstrates a notable increase, rising over 33% in a week and 12% in the last 24 hours. This raises questions about the potential for further price growth.
Reasons Behind Cardano Price Surge
One significant factor for the surge is the news of a potential Cardano ETF. An ETF allows both large and small investors to purchase Cardano like a stock, simplifying the investment process. Grayscale, a large investment firm, has filed for such an ETF, indicating interest in long-term investments in Cardano.
Additionally, activity on Cardano’s DeFi applications has increased by more than 32% over the past week, positively influencing the token's price.
Whale Activity and Trading Volume
In recent weeks, whales holding substantial amounts of ADA have purchased over 200 million tokens, showing confidence in potential price increases. A negative net exchange flow also indicates that users prefer to hold onto their tokens rather than sell them.
The trading volume of ADA remains supported by increasing OBV (On-Balance Volume), confirming real buyer interests. Open interest in futures contracts on ADA is also near its yearly high, signifying growing trader activity.
Cardano Price: Chart Insights and Projections
The ADA price chart exhibits a familiar pattern resembling the situation in 2021, when the price surged significantly after breaking through a resistance level. Currently, the critical level is $1.34; surpassing this mark could pave the way for new heights, possibly targeting $3. However, if the price drops below $0.78, the bullish outlook may be at risk.
The price increase of Cardano is supported by positive news, investor activity, and rising interest in DeFi applications. Key support and resistance levels will likely play a crucial role in determining future market dynamics.
