According to U.Today, Cardano (ADA) has seen a significant increase in large transactions, with a remarkable 25 billion ADA transferred within a 24-hour period. This surge in on-chain activity aligns with ADA's price movements, necessitating a closer examination of the on-chain metrics and their potential implications for the asset's future.
The on-chain data reveals a significant increase in the number of large transactions, often indicative of substantial wallet movements by whales or institutional players. These movements could suggest preparation for market developments, either bullish or bearish. The large transaction volume, which recently peaked at 27.67 billion ADA, underscores the intensity of this activity.
ADA's price chart tells a story of tension. After a period of decline, ADA is showing signs of recovery, hovering around the 50-day EMA, currently at approximately $0.5, but has yet to make a clear breakthrough. With ADA trading just below this critical EMA level, the focus is on whether it can gather the necessary momentum to surpass it.
If ADA succeeds, it could face the next resistance at approximately $0.55, a rise that would align with the increased on-chain activity. On the other hand, failure to move past the 50 EMA could see ADA retest the support near $0.49, a recent low that could serve as a launching pad for another upward attempt.
The future of ADA hinges on the on-chain activity and the surge of buying activity in the market. However, the market is currently pausing before potentially moving upwards again. The decrease in liquidity and volatility in the market as the weekend approaches could potentially lead to a significant price drop.
