Cardano (ADA) has demonstrated remarkable resilience. Despite the total crypto market capitalization slipping 4.5% in the past 24 hours to hover around $3.26 trillion, ADA has surged by over 11% since the beginning of the week. As of Wednesday, February 12, 2024, ADA is trading at approximately 76 cents during the early European session, showcasing a sharp contrast to the prevailing bearish sentiment in the market.
Cardano, a large-cap altcoin secured through a proof-of-stake (PoS) consensus mechanism, has seen its fully diluted valuation soar to more than $34.4 billion. With a 24-hour average trading volume of around $1.4 billion, ADA continues to demonstrate healthy market activity despite the challenges facing the crypto industry.
Whale Accumulation Drives Demand for ADA
A key factor behind ADA’s recent price surge is the relentless accumulation by whale investors. The demand for ADA has remained robust over the past few months, with institutional investors showing increasing confidence in the network. Notably, Grayscale Investments filed for the first-ever spot ADA ETF with the U.S. SEC, signaling growing institutional interest in the asset.
On-chain data from Santiment highlights significant accumulation among ADA whales. Investors holding at least 1 million ADA coins have added a staggering 1.41 billion coins to their holdings since November 2023. This represents 2.35% of the total ADA supply, emphasizing the bullish sentiment and confidence in Cardano’s long-term growth potential.
Chart Indicators Suggest Strong Rally Ahead
Following a period of consolidation between $0.68 and $0.76 in recent days, ADA appears to be positioning itself for a potential rally. After testing a crucial support range and rebounding above a falling logarithmic trend, ADA is poised to break through its macro megaphone structure and possibly reach new all-time highs. Investors are closely monitoring this crucial price action, with many expecting a breakout as the network continues its development toward decentralized governance and further adoption.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano (ADA) Surges 15.7%, Eyes $1 Milestone Amid Growing Momentum
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