Cardano (ADA) whales have made a significant acquisition of 130 million ADA during a recent market dip, signaling bullish behavior and reinforcing critical price levels. As the cryptocurrency approaches the $1.00 mark, all eyes are now on whether this resistance level will be broken in the near future.
Recent on-chain data reveals that large investors, known as “whales,” have been aggressively purchasing Cardano’s native token, ADA, during its recent price dip. The buying spree began when ADA’s price fell to as low as $0.30—an area now regarded as a strong support level for the asset. This accumulation has helped the price rebound sharply, with ADA trading near $0.99 at the time of writing.
Crypto analysts and market observers suggest that this whale activity has contributed to ADA’s recovery, signaling not only increased market confidence but also the potential for further upward momentum. Large-scale investors typically act with a long-term view, and their buying activity during market corrections often provides reassurance to retail investors.
Ali, a prominent crypto analyst, pointed out that the whale purchase of over 130 million ADA tokens is a key signal of confidence in the asset’s long-term prospects. As large buyers typically make moves that suggest patience and a long-term investment strategy, their actions often inspire smaller retail investors to follow suit. The fact that ADA has rallied from around $0.30 to near $0.99 in such a short time further supports the notion that the whales’ activities have played a pivotal role in strengthening the token’s price.
The $0.30 price point where the whales bought their ADA has now become a critical support level. With ADA now trading above $0.35, the market seems to have found stability at this price range. However, the token is not out of the woods yet. Resistance between the $0.36 and $0.38 range remains a significant hurdle for ADA. If the cryptocurrency can break through this resistance, a more significant push towards the psychologically important $1.00 level could soon follow.
Many investors are watching closely to see how ADA behaves around this $1.00 threshold. If ADA successfully breaks through this resistance, it could signal the beginning of a new bullish rally for the token.
At the time of publication, ADA was priced at $0.9898, reflecting a 6.19% increase over the last 24 hours and an 18.47% rise over the past week. With a 24-hour trading volume of $3.11 billion and a circulating supply of 36 billion tokens, ADA’s market capitalization is estimated at around $35.39 billion. These figures highlight not only strong demand but also a growing interest in the token from both retail and institutional investors alike.
The price fluctuations over the past week have also shown that ADA has traded within a range of $0.773 to $1.12, a sign of volatility but also sustained trading activity. This suggests that investors are not shying away from ADA, even when the price is in flux, further reinforcing the belief that ADA’s prospects are improving.
Looking at the technical indicators, Cardano’s price movement shows continued bullish momentum. On the daily chart, ADA is holding well above the 20-day Simple Moving Average (SMA), which stands at $0.756. This SMA serves as a dynamic support level, with the cryptocurrency managing to stay above it despite recent price fluctuations.
Bollinger Bands are widening, indicating increased volatility, which often occurs when an asset is approaching key resistance levels. ADA’s Relative Strength Index (RSI) currently sits at 74.66, placing it in the overbought zone. While this might signal potential short-term resistance due to profit-taking, an RSI above 70 still suggests that bullish momentum is likely to continue in the near term.
Additionally, the Moving Average Convergence Divergence (MACD) is showing a bullish crossover. The MACD line has moved above the signal line, with a positive histogram confirming the upward momentum in the market. This signals that ADA is on a strong path toward higher prices, though investors should remain cautious of potential pullbacks.
On-chain metrics offer further insights into the market’s confidence in ADA’s future. According to Coinglass, on November 27, 2024, ADA experienced a net outflow of $2.82 million, meaning more tokens left exchanges than entered. This outflow is often seen as a bullish signal, as it suggests that investors are moving their ADA holdings to private wallets, reducing the chances of large-scale selling and further strengthening the market.
Moreover, data from IntoTheBlock reveals that 70% of ADA holders are currently in profit, with only 29% in the red. This is a clear indication that most investors who hold ADA are in a favorable position, which could contribute to overall market optimism. Additionally, 71% of ADA holders have been holding their tokens for over a year, signaling long-term commitment to the asset and reinforcing the sentiment that investors believe in its future growth.
As Cardano continues to show positive technical indicators and on-chain data, the question remains: Will ADA finally break the $1.00 resistance level? With whale activity supporting the asset’s price and a growing number of long-term holders, there is strong potential for a bullish breakout. However, as with any volatile cryptocurrency, investors should remain cautious and keep an eye on market developments.
As the cryptocurrency market continues to evolve, ADA’s performance will be closely linked to broader market trends, including Bitcoin’s movements. Currently, ADA has a 0.94 correlation to Bitcoin, meaning its price often follows the general market direction. A strong performance from Bitcoin could further fuel Cardano’s rise.
Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9
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