Analyst and trader Dan Gambardello predicted a 10% increase in the price of Cardano for his 242,400 Twitter followers. In the event that the altcoin rallies, the analyst set a $0.32 price goal for ADA.
Bullish on-chain metrics and growing liquidity from USD Tether flooding the cryptocurrency market may serve as a short-term driver for a price increase in Cardano.
Three catalysts are likely driving the Cardano price rally.
Daily address activity, trade volume, accumulation by significant wallet investors, and the escalating social dominance of Cardano have all been seen as positive on-chain data that have a favourable impact on the price of ADA. An increase in daily address activity and trading volume indicates that more holders are adopting and using the asset.
An increase in these parameters is typically signalled by an impending price surge.
As seen on three prior occasions, data from crypto intelligence tracker Santiment demonstrates that increases in daily active addresses are related to rallies in ADA. Rising address activity was accompanied by a spike in Cardano prices in weeks 2, 3, and 4 of June. The price of ADA is probably going to rise in the near future if the pattern continues.
Additionally, whale accumulation, regarded as a traditional predictor of an impending asset rally, accelerated in ADA. Between July 2 and July 4, whales with between 1 million and 10 million ADA tokens purchased more Cardano tokens.
Prices of cryptocurrencies tend to rise when social dominance, a metric that records mentions of an asset on social media sites like Twitter, increases. Between July 2 and July 4, ADA social dominance increased steadily. A price increase follows the increase in the measure.
In addition, Tether reserves on exchanges have reached an all-time high, which is another factor that will probably aid in the recovery of assets that fell in value in June 2023.
The price of ADA fell precipitously following the Securities and Exchange Commission’s (SEC) crackdown on cryptocurrencies. In the ten days leading up to June 15, when the SEC cracked down on cryptocurrencies, the price of ADA fell by 30%, from $0.37 to $0.26.
By absorbing selling pressure on the cryptocurrency and acting as demand for altcoins like Cardano, Tether’s addition of liquidity to the crypto ecosystem may help the price of ADA rebound.
