Cardano: Social buzz equals gains? How ADA stands to benefit

Cardano sees surge in social activity, but could this be a precursor to a major price move?
ADA’s wedge pattern, and assessing the current state of demand.

As a seasoned analyst with over two decades of experience in the cryptocurrency market, I have seen my fair share of bull and bear markets. The recent surge in social activity surrounding Cardano [ADA] has certainly piqued my interest, and I can’t help but wonder if this could be a precursor to a major price move.

In the past day, Cardano [ADA] has been among the most talked-about blockchain networks. This surge in interest might be due to recent remarks made by its founder, Charles Hoskinson, suggesting that Cardano could surpass Bitcoin.

Cardano’s popularity has been growing steadily since early October, as suggested by Hoskinson’s statement. Despite a significant decline in followers on X from March to September, according to Messari, Cardano is now experiencing its most substantial recovery yet.

The network’s follower count on X reached a high of approximately 836,000 in March. However, this number gradually decreased in the following months and dipped to about 822,000 followers at the end of September. This indicates that it has lost nearly 14,000 followers since then.

At the moment of reporting, Cardano boasted a follower base of 823,870. That’s an increase of more than 2,000 followers since the start of this month. This surge suggests a renewed enthusiasm for the project, as there is often a correlation between the number of followers and the project’s price value in the past.

There’s a possibility that Cardano’s ADA could strengthen its position for an extended period of bullish growth, potentially spanning several weeks or even months.

Are ADA bulls preparing for a big move?

The surge in the number of users suggests a changing sentiment which may favor ADA bulls.

For several months now, the market trend appears to be confined within a narrowing pattern known as a “wedge.” This convergence indicates that a significant shift, or a break from this pattern, may occur very soon. At the moment of reporting, Cardano (ADA) was trading at $0.351.

Cardano: Social buzz equals gains? How ADA stands to benefit

On Friday, the 18th of October, ADA attempted to reinforce its support level. This action might indicate that a robust upward trend could potentially gather steam.

Regarding the pace we’ve been seeing, there’s been a steady increase in the number of transactions on the Cardano network starting from the second week of October. The network saw its least number of transactions this month on the 6th, with approximately 26,900 transactions. However, by the 19th, that figure had climbed to around 43,750 transactions.

Cardano: Social buzz equals gains? How ADA stands to benefit

An increase in transactional actions might suggest that interest in ADA within the Cardano network is growing. Yet, this rise doesn’t automatically mean a substantial accumulation of demand is taking place in the marketplace.

On October 1st, data from ADA’s historical concentration shows that a particular whale held approximately 3.19 billion coins, which equates to about 8.95% of the total supply. Interestingly, this same whale category was found to control around 3.2 billion ADA, representing roughly 8.98% of the entire supply on that date.

Read Cardano’s [ADA] Price Prediction 2024–2025

During a three-week span, investor holdings of ADA decreased from approximately 7,250,000,000 to 7,240,000,000 units. Meanwhile, retail balances increased slightly from roughly 25,180,000,000 coins to 25,190,000,000 coins.

An increased appetite for whale purchases indicates a positive trend, though this could potentially diminish due to selling actions from investors. This implies that, thus far, the demand for ADA has been relatively subdued.

2024-10-21 08:07

Are ADA bulls preparing for a big move?

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