Why Cardano Is About to Pump: Analyst

Based on current market dynamics, Analyst Michael Wrubel is optimistic about a Cardano pump soon.

According to the analyst, Bitcoin’s (BTC) current price level of $64,000 is a pivotal point for future movements, impacting major altcoins, including Cardano. According to him, recent investments by heavyweight financial firms such as BlackRock and Fidelity into Bitcoin-related assets hint at a bullish outlook for the market. 

The analyst points out that large-scale transactions involving 25 billion Cardano tokens have been recorded, suggesting strong interest from institutional players and “whale” investors. According to him, given the current market dynamics, this movement within the ADA market indicates growing confidence and a potential uptick in its valuation. However, some analysts warn Cardano could hit a $0.399 low soon as it faces some resistance at $0.523.

In line with the analysis, insights from IntoTheBlock reveal that Cardano whales have been busy. The analytics firm reports that the altcoin has seen an average large transaction volume of $13.84B daily in the last seven days. However, data dated five days back showed that most ADA holders were still not profitable.

Cardano whales are busy, with an average large transaction volume of $13.84B a day in the last 7 days.

For comparison, this is a third of Bitcoin's current volume, 5x as much as Litecoin's volume and over 16x that of Dogecoin! pic.twitter.com/xU2XMoEQbM

— IntoTheBlock (@intotheblock) April 29, 2024

Cardano Market Review: How Is ADA Doing Today?

Looking at an in-depth analysis of Cardano price charts, we see a marked consolidation phase identified by a rectangular pattern, suggesting a period of indecision among traders. This is further supported by the price hovering around a central value without significantly moving up or down within the rectangle. 

4-hour ADA/USD Chart | Source: TradingView

On the other hand, looking at indicators, we see that the Money Flow Index (MFI) is at 51.42, which is relatively neutral but slightly on the higher side. It is neither in the overbought region nor the oversold region, suggesting there isn’t a clear signal regarding market sentiment from this indicator. The Volume Oscillator shows a negative 16.65%, indicating that volume decreased during the period shown. This could imply a lack of strong conviction in the market moves and potentially weaken the current trend. Based on stats from CoinMarketCap, we see that the Cardano price is $0.4547, a slight decrease over the last day by 3.15%.