Is Cardano Partnership Price Above $0.30 Resistance?
Cardano (ADA) price struggled to break above the $0.30 resistance amid a rally in the crypto market. The analysis on the chain examines how the group's latest partnership deal will affect its momentum.
Cardano announced a landmark partnership deal on October 31st. Will it drive the ADA price beyond the inevitable $0.30 realm?
Cardano's new partnership could further boost network activity.
On Tuesday, October 31st, Cardano's parent company Emurgo announced a partnership with the Institute of Blockchain Singapore (IBS). As stated in the announcement, the “Kardano Driving Lesson” agreement can further expand the products and services hosted on the Layer-1 blockchain network.
According to on-chain data, Cardano's latest partnership period coincides with ongoing network activity trends.
According to Sentiment, Cardano has consistently attracted high levels of network activity over the past week. The table below shows that Cardano has observed constant network activity from at least 30,000 unique addresses over the past 9 days since October 23rd.
The Active Addresses metric is the daily sum of the number of unique addresses that are conducting valid network transactions. Strictly speaking, the increase in active addresses is a bullish indicator of blockchain-hosted projects and an increase in demand for the original native coin.
Specifically, historical trends show that the last time the Cardano network attracted at least 30,000 unique addresses for 9 consecutive days was in July 2023, when the price rose to $0.35.
This subtly indicates that the wave of Cardano network activity has the potential to drive prices above $0.30.
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The whales earned 80 million coins in 9 days
Another important indicator that could push the price of Cardano above $0.30 in the coming days is the trading activity of Wells. According to the Coins report, whales (addresses with 1 million to 100 million ADA) received 80 million coins between October 23rd and October 31st.
The Whale Wallet Balances gauge helps track real-time changes in the trading activity of large institutional investors. The chart above shows that over the past 9-days, Cardano whales have capitalized on the crypto market rally to acquire approximately $24 million (ADA/USD ~$0.30) worth of ADA coins.
Typically, large investors continue to buy during rallies, indicating that they are confident of further price increases.
If this thesis holds, ADA holders can anticipate a critical breakout above $0.30 in the coming days.
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ADA price forecast: $0.35 on the horizon
Taking cues from the bullish indicators analyzed above, Cardano price has regained the $0.30 territory in the coming days. Global
Global in/out money data representing the chain's historical buying trends of ADA holders corroborates this narrative. However, it shows that Cardano is currently trading with two significant support and resistance sets.
As shown below, 105,440 addresses bought 4.08 billion ADA at the highest price of $0.30. But if the bulls can continue the buying trend, they may force a break to $0.35 as predicted.
Alternatively, if ADA price drops below the $0.25 mark, the bears could reverse that forecast. But the bulls may press against a strong support buying wall around $0.27.
The chart above shows that 361,500 addresses currently have 5.55 billion ADA purchased at an average price of $0.27. If you HODL, you will avoid a high Cardano price reversal.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
