Cardano (ADA) Price Bulls Are Concerned With Securing Support Amid Volatility Heightened by Bitcoin Price Crash

Cardano price holds above the critical support at $0.35. The smart contracts token is fundamentally strong based on the blockchain data.

Cardano (ADA) price is displaying resilience in the face of turbulence sparked by the Bitcoin price crash. As ADA continues to trade above crucial support, bulls are optimistic about the possibility of the token embarking on a journey to $1.

This narrative is supported by several indicators, including a surge in active users on the Cardano network, as highlighted by Santiment data. A spike from around 20,000 on August 22 to approximately 35,000 on August 27 marks a significant increase in a short period.

Such an occurrence is particularly noteworthy, as it aligns with the premise that ADA price tends to rally with increasing network activity. This correlation suggests that a breakout to $1 is likely before the conclusion of September.

Furthermore, an analysis of the market value realized value (MVRV) metric reveals that holders are currently experiencing unrealized losses, as indicated by the ratio dropping below 1. This signals a tendency for investors to buy ADA with the intention of selling at a higher price.

Interestingly, despite the downtrend in ADA price, whales are exhibiting a different behavior. According to the supply distribution chart, addresses holding between 100 million and 1 billion coins have added 130.5 million ADA since August 22.

These addresses, which hold 7.23% of the total supply, are displaying a preference for accumulating more ADA even as its price cascades. Such an approach hints at a bullish outlook for the future.

From a technical perspective, ADA price maintaining the $0.35 support, which also coincides with the ascending channel’s lower boundary, is crucial for the uptrend to continue. The area also marks the beginning of a bullish fractal, which could propel a short-term rally to $0.42.

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