Cardano (ADA) Price Set to Add to Its 14% Recent Gains

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As with many altcoins, Cardano’s (ADA) price has experienced notable relief within the last seven days. Specifically, the cryptocurrency’s price increased by 14.15%.

However, in the last 24 hours, ADA has stalled around $0.45. This on-chain analysis explains why the token’s uptrend is not yet over.

Will Cardano Follow XRP’s Lead With Large Buying Presence?

A noteworthy basis for this thesis is Cardano’s Large Holders Netflow. This netflow is the difference between the accumulation and distribution made by large holders of a cryptocurrency.

When the rating of the netflow spikes, it signifies a surge in accumulation and strong buying activity by whales, who have a big influence on price. However, if the reading drops, it means that large holders are selling or reducing their exposure to a cryptocurrency.

For Cardano, data from IntoTheBlock shows that the Large Holders Netflow increased by a staggering 961.07% within the same period, while ADA’s price surged by 14%.

Cardano Large Holders Netflow. Source: IntoTheBlock

Historically, growth in this metric precedes further price hikes. Other investors watch the activities of these stakeholders and sometimes make informed decisions about these movements.

Therefore, it is possible to see retail investors follow up with more accumulation. If this happens, ADA will be in place to add to its recent gains.

Santiment, the on-chain analytic platform, also shares this bias. On July 17, the Santiment shared via its X account that the bearish sentiment around the token could be great for the cryptocurrency.

“Cardano is seeing the most bearishness in over a year. Counter-trading the crowd’s consensus could prove profitable.” Santiment posted on X.

If this happens, ADA may make moves similar to Ripple’s (XRP) 30.44% price increase. Interestingly, the Weighted Sentiment has changed since the time of the post.

Cardano Weighted Sentiment. Source: Santiment

At press time, the sentiment reading, which was earlier -1.683, has jumped to -0.08 and is on the brink of moving into positive territory.

One observation is that ADA’s price is moving alongside the rise in Weighted Sentiment. Thus, if sentiment eventually enters the positive region, it is likely that ADA’s value will trade higher.

ADA Price Prediction: Indicators Align For a Breakout

From a technical perspective, the Awesome Oscillator (AO) is moving upwards. The AO compares recent price movements to historical ones and uses this information to determine momentum.

When it is above the zero line, momentum is upward, which could foreshadow a price increase. Conversely, a reading of the AO below the signal line implies a downward trend.

Should the momentum continue to increase, the next target for ADA’s price will be around $0.49, as indicated by the Fibonacci Retracement indicator.

Cardano Daily Analysis. Source: TradingView

Another indicator that supports this potential price increase is the Chaikin Money Flow (CMF). In simple terms, the CMF assesses the money flow in and out of a cryptocurrency.

Therefore, if the indicator moves down, it means holders are taking money out. An increase like it is with Cardano gives credence to an influx of money into the token, suggesting strong buying pressure.

Cardano CMF. Source: TradingView

If sustained, ADA’s price will hit $0.49 in the short term. In addition, the Chang hard fork, scheduled for the end of July, can create a more bullish sentiment that reinforces the price increase.

However, if sentiment turns negative later on or large investors reduce their holdings, Cardano’s price may decline. If this is the case, the cryptocurrency’s value will drop to $0.42.