Cardano Price Prediction: ADA Bulls Take Positive View on US Economy, Eye Further Upside

Key Points

• Cardano is consolidating just under $0.52, having rallied from closer to $0.50 on Friday.
• ADA’s rise comes despite strong US jobs data boosting Fed tightening bets.
• Bulls continue to eye a retest of recent highs in the $0.55 area.

Cardano Rises Despite Hot US Jobs Data

ADA, the native token that powers the Cardano blockchain was last changing hands just below the $0.52 level and appears to be in a consolidation mood amid thin weekend trading volumes and a lack of fresh relevant newsflow. Despite stronger than expected US jobs data for July that triggered a build-up of Fed tightening bets (normally crypto bearish), ADA posted a 3.5% rally on Friday, rising from near $0.50 per token.

Cryptocurrency traders appear to be taking the view that a stronger US economy that is was not in recession in July (as this week’s NFP and ISM Services PMI data have demonstrated) is a positive for crypto. Note that, aside from the hot jobs report, there were other indications this week of US inflation having peaked, namely the further sharp drop in US oil prices and the declines in the prices paid subindices of both the ISM Manufacturing and Services PMI surveys.

That seems to have eased fears about the Fed getting super aggressive with rate hikes in 2023. Either way, ADA technical outlook remains positive, suggesting further near-term gains are likely. The cryptocurrency has been in an uptrend since mid-July and recently found good support at its 21-Day Moving Average. Bulls think a retest of the $0.55 resistance area is likely. A break above here could open the door to a swift run higher towards the late May/early June highs in the $0.67-69 area.

ADA Sharks and Whales Buy the Dip

According to crypto analytics firm Santiment, Cardano shark and whale wallets accumulated a combined total of $138 million in ADA tokens in the last 8 days, adding a combined 0.46% of all existing ADA supply. “This is only a mild accumulation for now but could get interesting if this trend continues throughout August,” Santiment added.

🐳🦈 #Cardano shark & whale addresses have accumulated a combined ~$138M in $ADA in 8 days after the mid-June dump around the local price top. This is only a mild accumulation for now, but could get interesting if this trend continues throughout August. https://t.co/7ix8VPSkZG pic.twitter.com/uPfuLfbbkl

— Santiment (@santimentfeed) August 5, 2022

Perhaps the successful implementation of the Cardano Vasil hard fork upgrade later this month, which Cardano founder Charles Hoskinson recently said he thinks is unlikely to be delayed again, could give the whales and sharks further reason to accelerate their accumulation.

Cardano Could Become “Bigger” than “Anything Seen in Crypto Before”

According to popular Cardano Twitter influencer @cardano_whale, Cardano has the potential to be “bigger” than “anything seen in crypto before” if decentralized governance under Voltaire works out well.

In a way Cardano is a blockchain like all others. Sure, we can argue how it’s more secure, decentralised etc. The avg user doesn’t always get this. But if decentralised governance under Voltaire works out, Cardano will be unlike anything seen in crypto before. It will be bigger

— ADA whale (@cardano_whale) August 4, 2022

According to the Cardano project roadmap, the Voltaire “era” sets in motion the “final pieces required for the Cardano network to become a self-sustaining system”, including the introduction of a voting and treasury system that gives the network the “capacity to be maintained and improved over time in a decentralized way”.