Can This Solution Propel Cardano [ADA] Bulls to $0.39?

Is a Surge to $0.39 Possible for Cardano [ADA] with This Strategy?

Cardano [ADA] has witnessed a notable increase in whale activity, with a total of $6.08 billion in significant transactions occurring within the last 24 hours. This surge in trading volume, amounting to approximately $17.71 billion ADA, has drawn attention to heightened market activity among major players.

However, is it advisable to proceed with caution in light of these developments?

Noteworthy Activity among ADA Whales

With Bitcoin [BTC] seemingly range-bound, investors might have redirected their focus towards Cardano, which has seen a price surge of over 10% in the last week.

Interestingly, data from IntoTheBlock has unveiled an intriguing scenario. Despite the upward momentum, large holders of ADA decided to capitalize on gains, resulting in a substantial influx of approximately 219 million ADA into exchanges — marking a staggering 606% surge from the previous day.

Fortunately for ADA bulls, this coincided with Bitcoin reaching $58K, coupled with a key inflation index registering a 2.5% decrease, thus reinforcing expectations of an impending rate cut.

Consequently, the downward pressure appears to have been absorbed, leading to a 2% increase in ADA’s price to $0.3601 at the time of writing.

A similar scenario unfolded in late August, where ADA witnessed significant growth as Bitcoin surged to $64K following a 13-day consolidation period. Nonetheless, the current market sentiment suggests a distinctive shift in dynamics.

September’s Strategic Roadmap Nurtures Uptrend

Cardano kicked off the month on a promising note with the Chang upgrade, a significant step forward in achieving complete decentralization. Subsequently, ADA observed its highest number of daily active wallets in 180 days, totaling around 40K.

Furthermore, the launch of the Snek-Fun memecoin platform contributed to heightened network activity, resulting in the creation of over 2,200 coins and a trading volume of $4.5 million in ADA on the first day.

These advancements sparked a surge in ADA’s valuation, transitioning nearly 200K addresses from a loss to a profit position, collectively holding tokens worth approximately $4 billion.

If the momentum of Cardano bulls continues — which appears likely — they could drive an additional 400K addresses into profitability as ADA aims to challenge the $0.39 resistance level.

However, the realization of this scenario hinges on the decision of key investors to refrain from selling, existing holders to maintain their gains, and the overall market sentiment remaining optimistic.

Given that one significant player has already sold, what are the prospects for the others?

Breaking Down the Potential $0.39 Barrier for Cardano [ADA]

The upcoming challenge for ADA bulls lies in surmounting the $0.39 threshold. To achieve this, bears would need to concede ground to enable a bullish breakout to materialize.

Despite the positive Weighted Sentiment surrounding Cardano, which peaked post the Chang upgrade, indicators such as the 180-day mean coin age and MDIA have dipped, suggesting an increase in selling activity or profit-taking. While an upward breakout is desirable, a minor retracement seems more plausible.

In essence, the trajectory of ADA’s price is intertwined with Bitcoin’s performance. Without significant support from Bitcoin, a pullback appears probable. Notably, the behavior of short-term holders who have accrued profits will be crucial. If September remains characterized by volatility, they may opt to offload their holdings.