Cardano (ADA) has recently exhibited volatile price trends, hovering just below the $1 mark. The broader cryptocurrency market has been buoyed by Bitcoin’s (BTC) resurgence, which surged past $105,000, sparking renewed optimism. Notably, major investors have accumulated 140 million ADA tokens, signaling bullish sentiment. Could this accumulation fuel ADA’s journey to $1.50?
Cardano Price Struggles at Key Resistance
Despite rallying to $1.15, Cardano failed to sustain its momentum, slipping 4% over the past week. Currently trading at $0.9804, ADA showed a modest 1% recovery in the last 24 hours, echoing the market’s cautious optimism. While Bitcoin’s strong position above $105K bolsters overall sentiment, altcoins like ADA continue to navigate critical resistance and support levels.
Traders are closely monitoring ADA’s price action, especially amidst broader financial market movements following Donald Trump’s inauguration as the 47th U.S. president, which has introduced additional volatility.
Whale Accumulation Signals Confidence
Between December 15, 2024, and January 22, 2025, large holders acquired 140 million ADA tokens. Whale activity often precedes significant price movements, as it indicates strong demand and long-term confidence. This accumulation aligns with increasing network activity, further reinforcing optimism around Cardano’s growth potential.
Network Engagement Reaches New Highs
Cardano’s blockchain is witnessing heightened activity, with daily active addresses hitting 50,828—a record high. This surge reflects growing investor interest at current price levels, hinting at a possible price rally. Increased engagement typically correlates with stronger market sentiment, which could act as a catalyst for ADA’s next breakout.
Technically, ADA is forming an inverse head-and-shoulders pattern on the 4-hour chart, a bullish indicator suggesting a potential trend reversal. A breakout above $1.15 could push ADA to $1.50, marking a 27% gain. The RSI at 47 points to a neutral trend, leaving room for upward momentum.
Also Read: Cardano (ADA) Shows Strong Rebound: Rising Network Activity Signals Bullish Outlook
Investors are watching closely as Cardano consolidates near $0.97 support. A decisive move past resistance levels could solidify ADA’s position as a top-performing altcoin, paving the way for significant gains in the coming weeks.
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.
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