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.
