Can Cardano Price Trigger 10% Breakout Rally Ahead of US CPI?

Cardano price increased over the past day as the upgrade nears completion. Speculation abounded in the crypto space after rumors of a potential meeting between Elon Musk and the Cardano founder went viral. The price of Cardano shows a bullish tendency but needs an increase in volume for the inbound rally. Will the US CPI data provide the required volatility?

Cardano Price Eyes Upcoming Inflation Data

The United States Bureau of Labor Statistics will release the latest measure of the Consumer Price Index (CPI) data in less than five hours. 

This economic metric, which shows the United States inflation rate, is closely tied to Bitcoin’s short-term price movements and may elicit a reaction from the number one crypto asset.

The market expects the CPI to be 3% YoY, matching June’s records. MoM inflation is expected to pick up slightly by 0.2%, higher than June’s 0.1%.

As the market awaits the release of the CPI data, the Cardano price increased 2.1% over the last 24 hours to trade at $0.3402. If CPI comes in as expected, Bitcoin price may move higher, above $62,000, pulling the rest of the market up with it. Hence, Cardano may get the volume it needs to rise higher.

Cardano Network Growing, But Whales Leaving

On-chain data from IntoTheBlock reveals that the Cardano network is growing. Over the last 24 hours, the daily active addresses, which is the number of addresses that made a transaction in the past day, increased from 23,510 to 25,510, an uptick of 8.5%. This suggests that news investors joined the Cardano ecosystem, a positive indicator of the Cardano price.

The New Adoption Rate (NAR), which shows the percentage of new addresses making their first transaction out of all active addresses on a given day, also increased from 24.94% to 26.05%. This indicates that newcomers comprised 26% of all on-chain activity on Cardano.

Conversely, as newcomers join the network, whales seem to be leaving. According to IntoTheBlock, whale activity dropped 99.77% over the last seven days, indicating a lack of interest in participating in the network.

Moreover, these large holders are cashing out their Cardano as the large holder netflow dropped into the negative zone between August 11 and 13. So far, the whales have offloaded $4.32 million of ADA in the last three days. 

ADA technical analysis reveals a potential reason why whales leave the network.

ADA Price Uncertainty Chasing Away Whales?

The ADA price is currently trending downward since it is below the 50-day and 200-day exponential moving averages (EMA). 

The asset faces some resistance at $0.3432, $0.3600, and $0.3743. On the lower side, support holds the price around $0.3200, a level that has been tested multiple times and remained strong.

The Cardano price chart shows a Symmetrical Triangle pattern, typically indicating a potential upward or downward breakout. ADA daily trading volume appears to be relatively low, which is typical before a significant breakout. A volume spike may confirm any breakout from the triangle.

Cardano’s open interest (OI) increased in the last 24 hours per Coinalyze, signaling bullish sentiment from investors. The Chaikin Money Flow (CMF) indicator is also positive, signaling a marginally bullish sentiment.

The Moving Average Convergence/Divergence (MACD) indicator just flashed a bullish cross, confirming that bulls may soon take over the ADA price action. The Relative Strength Index is neutral at 51, suggesting that the market is waiting for a clear direction.

Cardano Price Analysis Chart

If ADA price makes a clear break above the symmetrical triangle, it may signal market strength and prompt whales to return. Cardano may surge higher above $0.37, and the overall trend will shift to bullish.

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