ADA trades at $0.867, below the $0.899 high as traders cut gains
According to CoinMarketCap, the price of Cardano (ADA) is up almost 10% over the past 24 hours, outperforming the rest of the top 10 largest cryptocurrencies by market capitalization. ADA price fell to 15-month lows in a row until it found support at around $0.735 on April 30, which halted the decline. ADA later rose 17% to a May 4 high of $0.899.
At the time of publication, ADA is trading at $0.867, well below the $0.899 high as traders pulled gains. Cardano’s latest rally is supported by the Fed’s historic and long-awaited rate hike. On May 4th, Cardano’s stablecoin Djed was also launched on the public testnet.
Cardano enthusiast There is a belief that the launch of Djed could be a real supply shock for Cardano. On-chain analytics team Sentient reports that the impact of a 50 basis point increase in the Fed’s move almost immediately shifted the bullish trend for crypto, as it did after the hike in March.
Bitcoin and most altcoins posted significant gains as the Fed announced what would be the biggest rate hike in 22 years.
were #irrigated Today took its move as expected, with an interest rate hike of 50 basis points. Unexpectedly, the effect shifted #bullish almost immediately #crypto, just like it did after the March hike. we might have another #selltherumorbuythenews landscape. https://t.co/F0jEa9pNl3 pic.twitter.com/ofsiYVLYL0
— sentiment (@santimentfeed) 5 May 2022
As previously reported by U.Today, a large number of dormant ADA coins appear to be exchanging hands. Roughly 1.12 billion ADA have returned to circulation, leading to the recent price jump.
In addition, retail interest in Cardano’s business is growing rapidly. IntoTheBlock reports that the balance held by merchants, which refers to addresses held for less than 30 days, has increased by about 186% over the past 30 days. These addresses now own 36.14 percent of the total ADA supply.
On-chain data also indicates that whales have gone on a massive accumulation spree after a seven-month dumping stretch. Cardano’s large holders, or millionaire whales holding between 1 million and 10 million ADA, have added 196 million ADA to their portfolio over the past five weeks.
After a steady decline, the price of ADA fell to the previous level in February 2021, representing a 15-month low. Whales typically use periods of dip or consolidation to buy at a discount, and accumulate more with the expectation of a price rebound.