Metric analysis

Key Cardano (ADA) Metric Signals Pricing for a Rise

Cardano (ADA) price has been consolidating at the $0.50 level since early August, indicating market indecision. Crypto markets are struggling to recover from the damage caused by Crypto Winter over the past month. The July relief rally appears to have come to a halt. Nonetheless, a recent wave of wild Cardano (ADA) address accumulation could push the asset above its level if prolonged.

0.46% of current ADA supply added in 8 days

By Data from a Santiment chart, an approximate combined value of $138 million in ADA was accumulated by whale and shark addresses (addresses containing 10,000 to 10 million ADA) in just 8 days. The accumulation trend started on July 27 when the asset fell below $0.46 and has persisted ever since.

News of the Vasil Hard Fork delay hit the Cardano community two days later, but the negative sentiment generated by the setback did little to slow the buildup. The accumulation trend contributed an additional 0.46% of the circulating supply of ADA.

This trend indicates renewed interest in the asset despite FUD being pushed into space by the mid-June crash that saw ADA drop from $0.66 on June 8 to $0.42 in ten days. The accumulation remains moderate by community standards, but it could set ADA up for a breakout of the $0.50 zone if it holds.

ADA is looking to consolidate its position at $0.50

Recently, the Cardano community appears to be the most confident of the bunch, indicated by an increase in wallet addresses and accumulation trends. ADA wallet addresses reached a new ATH of 3.7 million just three days ago, with 3.1 million addresses holding $1 ADA and above.

ADA’s intraday performance yesterday was nothing short of the hallmarks of a consolidation, as the asset’s lack of support above $0.51 kept it tethered to the zone. Nonetheless, the $0.45 support widely seen in July appears to have been breached as ADA looks to consolidate its position at the $0.50 zone this month – the asset has not fallen below 0 $.49 in August.

As of this writing, ADA is holding its head high with the rest of the markets as it is trading at a value of 0.51 against the dollar, having risen 1.6% in the last 24 hours.

Abigal .V. is a cryptocurrency writer with over 4 years of writing experience. She focuses on news writing and is adept at finding hot topics. She is a fan of cryptocurrencies and NFTs.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.