Cardano (ADA) has advanced more than 50% since October 19, 2023, rising from $0.23 to a high of $0.37. The current price of ADA stands at $0.35, and for now, bulls continue to control the price movement.
The blockchain analytics platform, IntoTheBlock, observed an increase in investor confidence in the Cardano token in October, as ADA whales and investors acquired a total of 1.89 billion ADA during that month. This accumulation corresponds to an investment of more than $600 million in ADA tokens.
But where is the price of ADA going next, and what can we expect from the rest of November 2023?
Today, Crypto Lists will discuss Cardano (ADA) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 ADA whales increased their activity
- 2 Cardano (ADA) maintains a lead in crypto development activity
- 3 Technical analysis for Cardano (ADA)
- 4 Important support & resistance levels for Cardano (ADA)
- 5 What speaks for the rise in the Cardano (ADA) price
- 6 What indicates the downfall of Cardano (ADA)
- 7 What do analysts and experts say
ADA whales increased their activity
Cardano is a blockchain platform that allows transactions in its native cryptocurrency ADA, and enables developers to build secure and scalable applications powered by it. Cardano is connected with various payment programs, and it is important to say that a variety of projects have been built on the Cardano platform.
Cardano users need to buy ADA to facilitate transactions and participate in governance. Ownership of the token determines who gets to be a slot leader and add new blocks, and who earns a share of fees paid for transactions in blocks. ADA tokens are also used for voting on software policies, such as inflation rate, giving participants an incentive to hold ADA and ensure its future value.
ADA has advanced more than 50% since October 19, 2023, and one of the reasons behind this positive development is that there has been a significant increase in the number of whale transactions in the last several weeks for this cryptocurrency. When whales increase their trading activity, it usually indicates that they are getting confidence in the underlying coin’s short-term price prospects.
According to the blockchain analytics platform, IntoTheBlock, ADA whales and investors acquired a total of 1.89 billion ADA in October 2023 which corresponds to an investment of more than $600 million in ADA tokens. It is important to mention that the majority of this accumulation is said to have taken place between the price range of $0.24 and $0.27 and it remains to be seen whether this “bullish” phase could trigger a run above $0.40.
Cardano (ADA) maintains a lead in crypto development activity
Another positive piece of information is that on-chain analytics firm Santiment reported this week that Cardano saw its development activity tower over other major cryptocurrencies. According to Santiment, crypto’s top ten coins by development activity for the past 30 days are 1. Cardano (ADA), 2. Polkadot (DOT), 3. Kusama (KSM), 4. Hedera (HBAR), 5. Aptos (APT), 6. Ethstatus (SNT), 7. Chainlink (LINK), 8. Cosmos (ATOM), 9. Ethereum (ETH) and 10. Vegaprotocol (VEGA).
The phrase “development activity” pertains to the level of work accomplished by the developers of a cryptocurrency project within the last 30 days on the project’s public GitHub repositories. Unlike other measures, Santiment’s metric focuses on “events” rather than the total number of commits. Events encompass various actions taken on GitHub repositories, such as pushing a commit, forking a repository, or creating an issue. This method offers a more precise depiction of the developers’ real work because it guards against duplication or inaccuracies that might arise when assessing development activity based solely on commits.
For example, forking creates a duplicate copy of a repository, including all previous commits. By treating the act of forking as a single occurrence, Santiment avoids mistakenly attributing older commits to new developers. Cardano (ADA) could easily rise above the current price in the upcoming days of November 2023 but investors should also keep in mind that ADA is very volatile, and while positive developments can trigger substantial price increases, they also carry potential risks.
ADA is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency. At the same time, the macroeconomic landscape remains uncertain; major central banks continue aggressively fighting inflation by raising interest rates, and risk-on assets such as cryptocurrencies could suffer again in such conditions.
Technical analysis for Cardano (ADA)
Cardano (ADA) has advanced more than 50% since October 19, 2023, rising from $0.23 to a high of $0.37. The current price of Cardano (ADA) stands at $0.35, and as long the price of ADA is above $0.30, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Cardano (ADA)
On this chart (the period from April 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bulls control the price movement of Cardano (ADA) for now, and if the price advances above $0.40, the next target could be $0.45 or even resistance that stands at $0.50. The important support level is $0.30, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $0.25. If the price drops below $0.25, which also represents very strong support, the next target could be located around $0.20.
What speaks for the rise in the Cardano (ADA) price
The amount of ADA traded over the last several weeks saw a significant increase, and it is important to mention that according to data compiled by IntoTheBlock, ADA whales accumulated 1.89 billion coins in October. This may imply confidence among other investors, which could put further upward pressure on the price. According to the technical picture, ADA still has room for the upside, and if the price advances above $0.38, the next target could be resistance that stands at $0.40. Traders should also consider that the price of ADA is correlated with Bitcoin, and if the price of Bitcoin jumps above $40000, we can see this cryptocurrency at a higher price level than the current price.
What indicates the downfall of Cardano (ADA)
Investing in ADA involves a significant degree of unpredictability and substantial risk. While positive advancements have the potential to drive considerable price surges, they also come with associated risks. Furthermore, the broader macroeconomic environment remains uncertain, with major central banks actively combatting inflation through interest rate hikes, which could adversely impact risk-on assets like cryptocurrencies. It’s essential to note that ADA’s critical support level rests at $0.30, and a breach of this level could set the stage for a potential target of $0.25.
What do analysts and experts say
Since October 19, 2023, ADA has seen a substantial increase of over 50%, and one contributing factor to this positive trend is the notable surge in whale transactions within the cryptocurrency over the past few weeks. As reported by the blockchain analytics platform, IntoTheBlock, during October 2023, ADA whales and investors accumulated a total of 1.89 billion ADA, equating to an investment exceeding $600 million in ADA tokens. Notably, most of this accumulation occurred within the price range of $0.24 to $0.27.
The question now is whether this “bullish” phase could potentially instigate a surge beyond the $0.40 mark. Many crypto analysts say that more investors could purchase ADA in the weeks ahead, and as long the price of ADA is above $0.30, the price of this crypto remains in the BUY-ZONE. Crypto analysts also say that the SEC approval for the first Bitcoin ETF in the U.S. would certainly positively influence the price of ADA, but investors should also keep in mind that regulatory concerns surrounding the cryptocurrency market can also have a spillover effect, dampening investor sentiment and lead to a broader market correction.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.