- Cardano price is likely to observe a 10% rally in its price with a $0.32 target, according to technical analyst Dan Gambardello.
- USD Tether reserves on exchanges have hit a historical all-time high as the stablecoin’s liquidity climbs in the crypto ecosystem.
- Cardano’s on-chain metrics, daily active addresses and social dominance support experts’ thesis of a rally in ADA price.
Dan Gambardello, a crypto expert and analyst, told his 242,400 followers on Twitter that Cardano price is likely to witness a 10% rally. The expert set a $0.32 target for ADA price in the event of a rally in the altcoin.
The rising liquidity from USD Tether flooding the crypto market and bullish on-chain metrics could act as catalysts for Cardano price rally in the short term.
Also read: Cardano Price Prediction: ADA bulls assure another 20% gain for patient holders
Three catalysts likely driving Cardano price rally
On-chain metrics daily address activity, trade volume, accumulation by large wallet investors and the rising social dominance of Cardano have painted a bullish picture for ADA price. An increase in daily address activity and trade volume signals an increase in adoption and utility of the asset among holders.
Typically, a spike in these metrics is associated with an upcoming rally in the price.
%20[18.31.48,%2004%20Jul,%202023]-638240758340132690.png)
Daily active addresses in ADA, Volume vs price
Data from crypto intelligence tracker Santiment reveals that spikes in daily active addresses is associated with a rally in ADA, as seen on three previous instances. In week 2, 3 and 4 of June, rising address activity was followed by an increase in Cardano price. If the trend repeats itself, ADA price is likely to rally in the short term.
Moreover, whale accumulation, considered a typical indicator of an upcoming rally in an asset, picked up pace in ADA. Whales holding between 1 million and 10 million ADA tokens have scooped up more Cardano tokens between July 2 and 4, as seen in the chart below.
%20[18.31.54,%2004%20Jul,%202023]-638240758738932771.png)
Whale wallet holdings vs ADA price
Social dominance, a metric that tracks the mentions of an asset across social media platforms like Twitter, is associated with recoveries in crypto prices. ADA social dominance climbed consistently, between July 2 and 4, and the rise in the metric is followed by an uptick in price as seen in the chart below.
%20[18.32.04,%2004%20Jul,%202023]-638240759135563377.png)
Social dominance vs ADA price
Furthermore, Tether reserves on exchanges have hit an all-time high, and this is another likely contributor of recovery in assets that have suffered a decline in June 2023.
Stablecoin exchange reserves dominance
After the Securities and Exchange Commission’s (SEC) crackdown on crypto, ADA price suffered a steep decline. ADA price bled 30% from $0.37 to $0.26, between June 5 and 15, in a ten-day timeframe of the SEC crackdown on crypto.
Tether’s infusion of liquidity in the crypto ecosystem could drive a recovery in ADA price by absorbing selling pressure on the altcoin and representing demand for altcoins like Cardano.
Expert predicts 10% price rally in Cardano
Dan Gambardello, crypto analyst and pro-ADA expert, predicted a rally in Cardano in his recent YouTube video. The expert set a $0.32 bullish target for Cardano. Find detailed price targets in the video below:
At the time of writing, Cardano is trading above $0.29, having already recovered over 10% from last week's lows.
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