Welcome to Extreme Investor Network, where we provide you with in-depth analysis and insights into the stock market, trading, and all things related to Wall Street. Today, we’re diving into the world of Cardano and its recent price movements.
According to data from IntoTheBlock, Cardano’s average transaction size saw a significant decrease from 486,900 ADA to 319,700 ADA between Nov 4 and Nov 10, despite the coin’s price surging by 107% during that time. This drop in transaction size indicates that the recent rally in ADA is largely driven by retail traders, rather than institutional players.
Typically, larger transactions are made by whales or large institutional investors, whose actions can influence the direction and sustainability of a price rally. The fact that the average transaction size has decreased suggests that while retail demand for ADA has been strong, bigger investors have yet to enter the market in significant numbers.
However, if whales do start to participate in the market, Cardano’s price rally could see another significant push upwards. The substantial capital and improved market liquidity that these large players bring could give ADA the boost it needs to break out and reach new highs.
In terms of price forecasting, Cardano’s recent rally has lifted the coin above the VWAP (Volume Weighted Average Price) at $0.58, a bullish signal indicating strong buying momentum. Trading above the VWAP suggests that ADA’s price is being driven by favorable demand, potentially acting as a strong support level for the ongoing uptrend.
With the 34% decline in average transaction size for Cardano, there is even more upside potential for the coin when whales decide to join in on the action. Keep an eye out for any signs of institutional investors entering the market, as their presence could signal a breakout ahead for Cardano’s price.
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