Cardano (ADA) has been struggling to break above the $0.30 resistance level for the past week. However, on-chain data suggests that a price breakout may be imminent. The upcoming end of support for ADA on Robinhood on June 27 adds to the challenge for ADA bulls. The whales holding 1 million to 10 million ADA will play a crucial role in sustaining the ongoing price rally towards $0.40.
Despite the stagnant ADA prices, the underlying economic activity on the Cardano network has been rising. Daily Active Addresses, which measure the network’s daily usage activity, have increased by 63% between June 18 and June 26. This indicates a significant rise in value-adding economic activity.
Additionally, the bullish trading activity among Cardano whales is promising for ADA holders. These whales have made significant fresh purchases, adding another 30 million ADA worth approximately $10 million between June 22 and June 26. Their financial power and confidence in the project’s long-term viability can attract more participants and further boost Cardano’s economic activity.
Considering that the market has likely already priced in the Robinhood delisting, ADA’s price may break out as investors move to other exchanges that still support the cryptocurrency. The GIOM chart suggests that after surpassing the $0.30 resistance, Cardano may face fewer obstacles until it reaches the $0.40 price target.
However, ADA must first overcome the initial resistance at $0.30, as a significant number of addresses bought coins at this price level. If they decide to exit at their break-even price, it could trigger a major pullback. On the other hand, if the bullish momentum remains strong, ADA could double down on its positions and push towards $0.40.
However, there is a possibility that bears could regain control if ADA’s price falls below $0.25. Nevertheless, a large number of investors who bought ADA at a maximum price of $0.28 could provide substantial support. If this support fails, Cardano’s price may decline further towards $0.20.
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