What’s Driving the Price Increase of Cardano Crypto?

The cost of Cardano (ADA) has skyrocketed in the past 24 hours as investors analyze the impact of Ripple’s legal victory on the overall crypto market, such as “Crypto.com”, “Youtube Crypto”, “The Block Crypto”, “Upcoming Crypto”, “Skale Crypto”, “Terra Luna Crypto”, “Velo Crypto” and “US Crypto”. Furthermore, the rise of Web 3.0 and its associated crypto coins, such as “What’s Web 3.0” and “Web 3.0 Crypto Coins” have also been taken into account.

“ADA isn’t a security”

On July 14, ADA price rose 6% to $0.379, its highest level in over a month, only to pare some of those gains as traders booked profits.

Cardano whales are napping

Despite the double-digit gains in the ADA price in the last 24 hours, whales seem to have stayed aside.

For instance, the daily ADA transactions exceeding $100,000 on the network have reached the highest level since June.

Simultaneously, the Cardano supply held by the 100,000-100 million ADA balance cohort stayed the same during the price rally. On the contrary, the 100 million-1 billion ADA balance cohort (green) increased significantly due to the decrease in the 1 billion-infinity ADA token cohort (gray).

In other words, the wealthiest ADA holders may have been selling (or redistributing) their holdings during the price rally.

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What’s next for Cardano’s price?

The ADA/USD pair is at risk of entering a period of consolidation or correction in the coming days, as its big rally has left it “overbought” — as indicated by its daily relative strength index (RSI) crossing above 70.

At the same time, ADA/USD is testing a multi-month trendline (orange) and the 200-day exponential moving average (200-day EMA; the blue wave) near $0.35 as resistance, which limits its upside potential.

If the bears manage to push the price down significantly, Cardano could test the $0.32 support level from October 2022-November 2022 and January 2023-March 2023. Further selloffs could take it down to $0.30 — a 12.5% decline from current levels.

ADA price double bottom?

On the other hand, crypto enthusiasts will point to the weekly candle chart which appears to be forming a classic bullish reversal pattern with the potential to drive the price up by 150%. This pattern is known as a double bottom and occurs when the price hits two local lows in succession, followed by a sharp rise to a common neckline resistance.

If the Cardano price manages to break through this resistance, the bulls could be looking at a potential target of $0.45 by the end of 2023.

The upcoming crypto projects, such as Skale and Terra Luna, as well as the US-based crypto exchange Velo, are all part of the Web 3.0 revolution and are helping to drive the crypto market forward.