Home Altcoins News ADA’s Bullish Trajectory: Santiment’s On-Chain Insights and Resistance Challenges

ADA’s Bullish Trajectory: Santiment’s On-Chain Insights and Resistance Challenges

Cardano (ADA) is navigating a recovery path following a significant market downturn, and Santiment’s on-chain data indicates a potential bullish trend. With a surge in transactions involving large holders, ADA faces a formidable resistance barrier. Santiment’s analysts suggest that the movement in ADA’s price, influenced by whale activity, could lead to further gains if key resistance levels are breached. This analysis delves into the on-chain metrics and price dynamics, shedding light on ADA’s potential trajectory.

ADA’s Recent Price Movement: On January 29, ADA experienced a nearly 13% increase in price, finding support around the 100-day Simple Moving Average (SMA) at $0.4648. Despite a subsequent 3.99% dip, currently trading at $0.5083 with a market cap of $18 billion, ADA’s smart contracts deployments have been on the rise. Santiment’s analysis attributes this surge to shark wallets (holding 500 to 1000 ADA) and whale wallets (holding over 1000 ADA).

On-Chain Data and Bullish Signals: Santiment’s on-chain data reveals a significant uptick in transaction counts involving whales, indicating large holders transferring substantial amounts of ADA. The resurgence of wallets holding between 100,000 and 100 million ADA tokens over the past eight months adds to the optimistic scenario. This resurgence suggests a potential upward trajectory, challenging the resistance at $0.5410.

Resistance Challenges and Potential Gains: ADA faces a crucial resistance level at $0.5410, represented by a descending trendline. A successful breach of this resistance could propel ADA towards the 50-day SMA at $0.5597, setting the stage for a further advance towards $0.6000, marking a 15% increase from current levels. In an optimistic scenario, ADA could target higher levels, aiming for the blockade at $0.6412 or even surpassing the psychological level of $0.6800.

Downside Scenarios and Support Levels: Despite the bullish outlook, heightened selling pressure could lead to a decline in ADA’s price. Breaking below the 100-day SMA at $0.4648 may signal a more extended downturn, potentially reaching the $0.3790 mark, levels not seen since December 1, 2023, indicating a possible 30% decrease from current levels.

Community Controversy and Response: Controversy has arisen within the Cardano community, sparked by a forecast from cryptocurrency observer Eric Wall, predicting ADA’s exit from the top 10 digital assets by the end of the year. Wall suggested that Polygon (MATIC) could surpass ADA’s position. In response, Cardano founder Charles Hoskinson reacted with a sarcastic GIF, playfully acknowledging the skepticism surrounding ADA’s trajectory.

Conclusion: Santiment’s on-chain data presents a bullish picture for ADA, emphasizing the role of large holders in influencing its price. The upcoming challenge of breaching resistance at $0.5410 will be closely watched by the crypto community. ADA’s potential gains, contingent on overcoming key resistance levels, highlight the dynamic nature of its market movements. As ADA aims for recovery and further price exploration, the community awaits developments that could shape its trajectory in the coming weeks.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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