ADA trades at $0.867, down from highs of $0.899 as traders pull off gains
According to CoinMarketCap, the price of Cardano (ADA) has risen nearly 10% in the past 24 hours, outperforming the rest of the top 10 cryptocurrencies by market capitalization. ADA price steadily declined to 15-month lows until support was reached at around $0.735 on April 30, halting the declines. ADA then rose 17% to hit highs of $0.899 on May 4.
At the time of publication, ADA trades at $0.867, down from highs of $0.899 as traders pulled gains. Cardano’s latest rebound seems to be supported by the historic and long-awaited rate hike by the Fed. On May 4, Cardano’s stablecoin Djed also launched on the public testnet.
Gimbal Enthusiasts I think the launch of Djed could be a real supply shock for Cardano. On-chain analysis team Santiment reports that the impact of the Fed’s decision to increase rate hikes by 50 basis points unsurprisingly shifted the uptrend almost immediately for the crypto, just like after the rise. Of March.
Bitcoin and the majority of altcoins recorded significant gains as the Fed announced what would be the biggest rate hike in 22 years.
As previously reported by U.Today, a significant number of idle ADA coins appear to be trading hands. Around 1.12 billion ADAs have been put back into circulation, leading to the recent price rebound.
Besides this, retail interest in trading Cardano seems to be rapidly increasing. IntoTheBlock reports that balances held by traders, which refer to addresses holding for less than 30 days, have surged by about 186% in the last 30 days or so. These addresses now own 36.14% of the ADA supply in total.
The on-chain data also indicates that the whales went on a massive hoarding frenzy after a seven-month dumping period. Large Cardano holders, or millionaire whales with between 1 and 10 million ADA, have added 196 million ADA to their wallets in the past five weeks.
Following a steady decline, the ADA price fell to levels last seen in February 2021, representing 15-month lows. Whales typically use periods of dip or consolidation to buy at a discount, accumulating more with the hope of a price rebound.
