Cardano

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  The number of Cardano's richest investors holding ADA has surged to its highest level in almost a year. 
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<div class="cointelegraph"> 
 <p>The <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> of Cardano (ADA) risks <a rel="noopener noreferrer nofollow" title="falling" href="https://thebittimes.com/tag/falling.html">falling</a> by over 20% in August as it enters a breakdown stage of a classic technical pattern that could be offset by some promising fundamentals.&nbsp;</p> 
 <h2 id="ada-price-risks-falling-to-june-lows">ADA price risks falling to June lows</h2> 
 <p>Dubbed Bump-and-Run-Reversal (BARR), the pattern develops when excessive speculation drives the <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s higher quickly, eventually leading to a "bull trap" situation. As it forms, the <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> trend undergoes three stages — Lead-in, Bump, and Run — as shown below.</p> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/08/8f423d37172f186d5d76ed725128db5f.webp"> 
  <figcaption style="text-align: center;"> <em>Bump-and-Run-Reversal illustration. Source: Warrior Trading</em> 
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 <p>The Lead-in stage sees the <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> trending upward in an orderly fashion — without any excess speculation. But the Bump stage witnesses a sharp advance in <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a>s, followed by a complete wipeout of the spike.</p> 
 <p>In the Run stage, the <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> breaks below the support from the Lead-in trendline. Currently, Cardano appears to have entered the Run phase of its BARR pattern, as shown below.</p> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/08/5f3e254bdf97989b856674eea9673c69.webp"> 
  <figcaption style="text-align: center;"> <em>ADA/USD daily price chart. Source: TradingView</em> 
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 <p>If the pattern is confirmed, BARR's downside target is measured after subtracting the breakdown point at the support line from the pattern's maximum height. That brings ADA's <a rel="noopener noreferrer nofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> target near $0.22 in August or early September, down 20% from current levels.</p> 
 <p>Conversely, an ADA rebound can reach the 50-day exponential moving average (50-day EMA; the red wave in the chart below) near $0.30 in August, up 5% from the current prices.</p> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/08/4606770af60a1d1700de489a1e5e30bb.webp"> 
  <figcaption style="text-align: center;"> <em>ADA/USD daily price chart. Source: TradingView</em> 
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 </figure> 
 <p>Furthermore, flipping the wave into support could see a further run-up toward the 200-day EMA (the blue wave) near $0.34, up around 30% from current price levels.</p> 
 <h2 id="whales-and-sharks-buy-ada-price-dips">Whales and sharks buy ADA price dips</h2> 
 <p>On-chain fundamentals, however, could offset the bearish risks for Cardano.</p> 
 <p>Notably, whale and shark wallets holding between 100,000 and 1 million ADA have accumulated $116.1 million worth of Cardano since May 2023, raising their net holdings to the highest levels since September 2022.</p> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/08/43471ec8c51afa4f6c7478bb8cb2fb6c.webp"> 
  <figcaption style="text-align: center;"> <em>Cardano whales and shark accumulation in recent months. Source: Santiment</em> 
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 <p>This period of Cardano accumulation coincides with its 25% price decline caused by regulatory fears in the United States. </p> 
 <p><strong><em>Related:&nbsp;Here’s what happened in crypto today</em></strong></p> 
 <p>Simply put, ADA whales and sharks have bought the price dip, and are betting on future gains.</p> 
 <h2 id="cardano-tvl-dapp-transactions-grow">Cardano TVL, dapp transactions grow</h2> 
 <p>Additionally, the ADA accumulation period happened alongside growth in Cardano's key network metrics in the second quarter. Namely, the total-value-locked (TVL) grew&nbsp;9.7% quarter-on-quarter (QoQ), while average daily dapp transactions jumped 49% QoQ.</p> 
 <figure> 
  <img src="https://cdn.thebittimes.com/images/2023/08/08/b8e002c973b7c12fc812ce5fc66448e3.webp"> 
  <figcaption style="text-align: center;"> <em>Cardano TVL denominated in the U.S. dollar and ADA. Source: Messari</em> 
  </figcaption> 
 </figure> 
 <p>Stablecoins fueled this TVL and dapp transactions, growing 34.9% QoQ — from $10.0 million in Q1 to $13.5 million in Q2. This growth in network activity should add to the upward pressure for ADA, which serves as a fee settlement and staking token in the Cardano ecosystem.&nbsp;</p> 
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. </p> 
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Can Cardano whales stop ADA price from falling 20%?

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