Could Cardano’s DJED Propel ADA Price Higher in 2023?


Cardano has experienced significant gains in recent weeks. What are the catalysts that can lead to a price jump?

A deep dive into the underlying on-chain data shows how an ongoing spike in whale activity could propel ADA into higher price levels.

DJED Stablecoin Launch Attracts Whales to the Cardano Ecosystem

ADA, the governance coin for the Cardano ecosystem, has benefited from renewed investor interest in the crypto market. On-chain data shows a spike in whale transactions, flagging other related metrics.

The rise began on February 1, a day after Cardano announced its crypto-backed DZ stablecoin.

On-chain data from Sentiment shows that whale activity on the Cardano network has recently increased since the launch of the DZ stablecoin. The 2,117 whale transactions recorded on March 21 are significantly higher than the 327 transactions reported on February 1.

Cardano (ADA) whale transactions.  March 2023
Cardano (ADA) whale transactions. March 2023. Source: Sentiment

Whale transactions measure daily transactions exceeding the $100,000 threshold. A closer look at past market cycles shows how bullish movements in whale transactions often precede ADA price increases.

If this situation persists, it could signal more gains for ADA holders.

Similarly, the share of coins held by long-term holders of Cardano has increased in comparison to short-term traders in recent weeks. IntoTheBlock shows that wallet balances of long-term holders have increased, while balances held by short-term traders have decreased marginally.

Between February 3 and March 22, Balances on the wallets of long-term holders have increased from 8.5 billion ADA to 9.7 billion ADA. During the same period, coins held by short-term traders decreased by approximately 200 million ADA.

Cardano (ADA) balance by time held.  March 2023. Source: IntoTheBlock
Cardano (ADA) balance by time held. March 2023. Source: IntoTheBlock

An increase in the wallet balance of long-term holders can be considered a bullish sign as it suggests a strong belief among crypto investors that the asset has long-term value and growth potential.

ADA Price Prediction: Eyes On $0.50

The Exchange Market Depth chart from IntoTheBlock shows that ADA may soon break above $0.40. Market depth spread is a separate chart of limit orders placed by ADA traders on top exchanges. It shows important support and resistance points based on the current prices.

Based on the Market Depth model, Cardano may face minimal resistance until it reaches $0.40, where 1.6 billion ADA is ready for sale. Nevertheless, if Cardano beats this resistance, it could rally 30% towards $0.50, where there are 1 billion ADA sell-orders open.

Cardano (ADA) Exchange Market Depth, March 2023
Cardano (ADA) Exchange Market Depth, March 2023. Source: IntoTheBlock

To invalidate this bullish trend, Cardano price must break below the buying wall of 4.7 billion ADA, or around $0.30. If this support breaks, ADA price could decline again towards $0.25.

disclaimer

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