Cardano (ADA) Whale Interest Burgeons, But Price Unaffected

• Cardano has yet to recover from the SEC’s crypto crackdown, trading 25% below its June High.
• Despite Whale interest increasing and its DeFi ecosystem expanding, Cardano’s price remains unaffected.
• Cardano’s price action in the following weeks depends on who takes control: The Bears or the Bulls. 

Cardano has been struggling to gain momentum since the SEC crypto crackdown. Despite the development team’s multiple attempts at addressing the concerns regarding its decentralization, the ecosystem continues to face turbulence as major US exchanges delist Cardano and dump their ADA holdings. 

Currently trading 25% below its June high, Cardano now finds itself struggling to break through crucial resistances, even with whale interest rising and its DeFi ecosystem thriving.

Cardano Whales are Confident

Since the SEC’s crackdown, Cardano (ADA) has been consolidating between $0.26 and $0.29, struggling to break through. The token still traded under $0.29 at press time with a daily trading volume of $210 million. 

However, despite the slow movement, Whale interest in the ecosystem has been burgeoning, even when ADA plunged to its 2-year low of $0.22 in June. According to Santiment data, Whales have maintained an average of 110 daily transactions exceeding $1 million on the network. 

Additionally, according to IntotheBlock data, addresses holding 100 million to 1 billion ADA have seen a 3% increase in their holdings over the past month, indicating that smart money is confident in the long-term prospects of Cardano and accumulating ADA. 

However, despite the growing whale interest, ADA has yet to overcome the massive obstacle at $0.3.

Cardano Retail Investors Are Not Confident

While Cardano whales continue to accumulate ADA and remain unfazed by the negative news surfacing, retail investors, on the other hand, have been significantly affected. Cardano’s daily active user count has dwindled since the SEC’s security classification, and like its price, it has yet to recover. 

According to Santiment, Cardano Daily Active Addresses dropped from over 100,000 on June 10 to 50,0000 on July 10, marking a 50% decline and indicating a lack of confidence among retail investors.

If activity from retail users remains scarce, Cardano price action could struggle to move in the following weeks. 

$0.30 is the Level to Beat for ADA

Overcoming the $0.30 level is most crucial for Cardano bulls in the upcoming weeks, but it may prove to be a challenge considering the mounting sell pressure from the bears. Over the past month, Cardano’s previous attempts to reclaim $0.30 have been met with resistance from massive sell walls set by the bears, hindering its recovery. 

If the bulls manage to overpower the bears, there’s a high possibility that Cardano could reach $0.32 for the first time in over a month. However, if the bears take control, ADA’s price could crash toward $0.25. 

At press time, investor sentiment remained primarily bearish, as reflected by on-chain, derivatives, and exchanges data by IntoTheBlock. 

On the Flipside

• At press time, ADA is 90% down from its all-time high of $3.1.
• Cardano Founder Charles Hoskinson believes that by the summer of 2023,  Cardano could surpass Bitcoin, Ethereum, and every other cryptocurrency in decentralization. 

Why This Matters

The following weeks are crucial for Cardano and could shape its trajectory for the rest of the year. ADA has been struggling to break through $0.3, and with Whale interest rising, it could likely retest its June high. However, if its support level fails to hold, the token could revisit $0.25, hindering its progress. 

Follow up on Cardano developments: 

DailyCoin Cardano Regular: Bears & Bulls Clash, TVL Swells, But Price Remains Steady 

Read how Cardano is incentivizing governance actions: 

How Cardano Looks to Incentivize Contributors on Governance Actions