The price of Cardano's ADA token saw substantial gains this week thanks to increasing whale transactions and a more dovish outlook for monetary policy. ADA rallied 18% to over $0.66 after the Federal Reserve signaled potential interest rate cuts on the horizon in 2024. This policy shift has boosted sentiment across cryptocurrencies as liquidity is set to improve.
Keypoints
- Cardano's ADA token saw an 18% price surge to $0.66 after the latest Fed meeting signaled future rate cuts
- Whale transactions on the Cardano network topped $1.5 billion over 24 hours, showing renewed investor interest
- ADA price broke out above resistance levels, with technical targets at $0.737 and $0.87 representing 35% further upside
- Trading volumes on Cardano decentralized exchanges spiked over 140% week-over-week nearing $50 million
- ADA hit 17-month highs, with buyers optimistic on crossing the psychological $1.00 level if momentum sustains
According to on-chain analytics platform IntoTheBlock, large transactions on the Cardano network topped $1.5 billion over the prior 24 hours. These high-value transfers suggest renewed investor interest, especially amongst whales who conduct transactions over $100,000 in size.
This influx of big money has propelled Cardano's overall volume to $19.47 billion while its market capitalization sits near $23 billion. ADA's surge comes as investors pile back into risk assets across the board following the Fed's indication of a softer stance.
Sentiment has swiftly turned bullish on Cardano's technical outlook as well. ADA recently experienced a breakout above key resistance levels that had constrained its price action for months. This decisive move opens up further upside targets at $0.737 and $0.87 in coming weeks, representing 35% additional upside from current levels.
Beyond spot markets, ADA's resurgence is also showing up in trading activity on decentralized exchanges built on the Cardano blockchain. Volumes on Cardano DEXs spiked 140% week-over-week to approach $50 million as per DefiLlama data. This shows strengthening conviction around the altcoin as both short-term traders and long-term holders accumulate positions.
Given momentum remains strong, buyers have set their sights on ADA reclaiming the important psychological $1.00 mark in early 2024. Prices hit a 17-month high already, crossing above its 50-week moving average. Additional whale transactions could push Cardano toward this round number milestone which would further validate the durability of its uptrend. If ADA drops decisively below $0.70 however, its breakout would be invalidated with risk of a retreat back towards the $0.55 level.
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