Cryptocurrency research company 10x Research has analyzed Cardano’s (ADA) recent rise and stated that current data may indicate a bottoming out in price.
According to 10x Research, ADA is trading above both its 7-day and 30-day moving averages. Cardano’s price has risen by approximately 20.8% in the last week, largely driven by purchases from large investors.
The research firm noted that whale wallets accumulated over 240 million ADA in just five days. The continued buying by large investors as the price rises was considered a significant bullish signal by 10x Research.
Technical and regulatory developments within the Cardano ecosystem were also cited as factors supporting its rise. Cardano and Injective established their first cross-chain connection via the Inter-Blockchain Communication (IBC) protocol on the testnet. The integration aims to enable ADA to be used within the Injective ecosystem.
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In addition, Cardano is expected to complete the 75-day trading history process required for the regulated futures market on the CME on August 9th. 10x Research noted that this development could be significant for ADA’s potential eligibility for a spot ETF in the future.
The Cardano network has also entered the planning phase for the Dijkstra era following the Van Rossem hard fork upgrade.
10x Research argued that while ADA stood out with a weekly increase of approximately 21%, the crucial point was not the magnitude of the rise but “who was buying and why.”
According to the company, a broader capital rotation is also being observed in the market. The shift of capital from memecoin speculation to Layer-1 projects with large market cap and yield-generating DeFi assets may signal an early altcoin season.
*This is not investment advice.
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