Cryptocurrency-focused research firm 10x Research analyzed Cardano's ($ADA) recent rally and stated that current data may indicate a price bottom is forming.
According to 10x Research data, $ADA is trading above its 7-day and 30-day moving averages. The price of Cardano has risen approximately 20.8% over the past week, primarily driven by purchases from large investors.
The research firm noted that large investors accumulated over 240 million $ADA in their wallets over five days. The ongoing purchases by large investors as the price rises were interpreted by 10x Research analysts as a significant bullish signal.
Technical and regulatory developments within the ecosystem were also cited as factors contributing to Cardano's growth. Cardano and Injective established the first cross-chain connection via the Inter-Blockchain Communication (IBC) protocol on the testnet. The goal of the integration is to enable the use of $ADA within the Injective ecosystem.
Furthermore, Cardano is expected to complete a 75-day trading history review required for a regulated futures market on CME by August 9th. 10x Research analysts noted that this event could be significant for the potential of a future spot ETF inclusion for $ADA.
The Cardano network has also transitioned to the planning phase of the Dijkstra era following its network upgrade to the Van Rossem hard fork.
10x Research analysts argued that while $ADA shares stood out with a roughly 21% weekly gain, the key point was not the scale of the rally, but rather the question of "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 meme coin speculation towards large-cap layer-1 projects and yield-bearing DeFi assets could signal the beginning of an altcoin season.
*This is not investment advice.
