- The Cardano (ADA) price broke out of the strong resistance zone between $0.08 and $0.09 yesterday in an unexpected rally of around 12%.
- The on-chain data shows that ADA could be in the early stages of a rally.
After the Cardano (ADA) rallied strongly at the end of May/beginning of June, climbing from around USD 0.055 to as high as USD 0.090. Since then, the price has been in a sideways trend around the USD 0.080 mark over the past month. However, with yesterday’s announcement that the Shelley code was successfully implemented in mainnet, ADA experienced a rapid rise in the price.
It was particularly noteworthy that this occurred independently of general market sentiment, as Bitcoin and others only saw small gains yesterday. Within three hours, ADA rose from $0.083 to as high as $0.097. This puts the price just short of the June 2019 high, when ADA was trading at $0.107.
At the time of writing, the ADA price consolidated slightly and traded at USD 0.093, with a price increase of around 12% within the last 24 hours. With a market capitalization of USD 2.42 billion, Cardano (ADA) ranks 9th in terms of market capitalization, continuing its rise in the top 10.
On-chain data points to renewed Cardano (ADA) price rally
Only on Monday we reported that Cardano’s on-chain data looked rather bearish and the price range between $0.08 and $0.09 has established itself as a strong resistance. As such, yesterday’s rise came as a surprise to many analysts. On the other hand, it seems that the way is now clear for further gains.
As the data from IntoTheBlock, especially the In/Out of the Money Around Price (IOMAP) indicator, shows, ADA could be in the early stages of another rally. There is little resistance in the range between USD 0.09 and USD 0.11 in the sense of a small volume that could stop the upward trend in this area.
Yesterday’s rise in the share price was accompanied by an increase in transaction volume, and in particular the volume of ADA whales. The data from IntoTheBlock shows that larger transactions with a value of over USD 100,000 have increased significantly. Nevertheless, the pump was lower compared to May 31, when ADA moved into the region of USD 0.08.
However, it is not only the on-chain data but also the fundamental data that speak in favor of this being merely the early phase of a renewed price rally. Today, Thursday, at 16:30 UTC, the Cardano Virtual Summit will start to celebrate the launch of the Shelley code in mainnet. As Charles Hoskinson announced, the summit will hold one or two surprises in store.
In addition to the release of Shelley, the next stages of Cardano’s development, its schedule and possibly partnerships will be discussed. It has already been announced that Cardano’s multi-asset standard will be presented, which is supposed be much better than Ethereum‘s ERC20 standard. In addition, Prism will be presented, an identity solution that offers decentralized IDs and is intended to compete with Microsoft with its product.
Ultimately, the ADA price could be fuelled by the virtual summit today and tomorrow as new partnerships and products are announced.