- 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.
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.
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.
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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