Cardano [ADA] has found itself in the spotlight, witnessing a significant surge in whale activity. Over the past day, a staggering $6.08 billion worth of large transactions flooded the ADA network, equivalent to $17.71 billion ADA tokens. As the crypto market buzzes with this uptick in trading activity among major players, many investors are left wondering: Should they exercise caution?
ADA Under Whale Radar
While Bitcoin [BTC] remains trapped in consolidation, many investors appear to have shifted their attention to Cardano. ADA surged over 10% in the past week, catching the eye of traders seeking new opportunities. Data from IntoTheBlock revealed a surprise twist, showing that despite the recent price climb, large ADA holders have started taking profits. In fact, around 219 million ADA tokens flowed into exchanges—a massive 606% spike from the previous day.
This event, however, coincided with Bitcoin’s rise to $58,000 and a key inflation index dropping by 2.5%, fueling expectations of a potential rate cut. The selling pressure from whales was seemingly absorbed by the market, pushing ADA’s price up 2%, bringing it to $0.3601 at press time.
This pattern of whale movement is not entirely new for Cardano. Back in late August, as Bitcoin broke out to $64,000 following 13 days of consolidation, ADA also made a strong move. But there’s something different about this time.
One of the major drivers behind ADA’s recent price surge is the launch of the Chang upgrade, a key step toward Cardano’s full decentralization. This development brought renewed interest in the network, with daily active wallets hitting their highest level in 180 days—reaching approximately 40,000.
In addition, the introduction of the Snek-Fun memecoin launchpad significantly boosted Cardano’s ecosystem activity. Over 2,200 new coins were created on day one, driving ADA’s trading volume up by $4.5 million. These technological advancements and network upgrades have propelled ADA’s value, moving approximately 200,000 addresses from a state of loss into profit, now holding around $4 billion worth of tokens.
If bullish sentiment around Cardano continues, analysts believe that an additional 400,000 addresses could enter profit territory, especially as ADA approaches the critical $0.39 resistance level. However, for this scenario to materialize, several factors must align, including whales holding onto their tokens and general market sentiment staying bullish.
Can Cardano Break the $0.39 Barrier?
For ADA bulls, the $0.39 resistance is the next major hurdle. A breakthrough at this level would require bears to capitulate and allow a bullish breakout to take hold. Encouragingly, weighted sentiment around Cardano has remained positive, particularly following the Chang upgrade.
However, caution may be warranted. Key metrics, such as the 180-day mean coin age and the Mean Dollar Invested Age (MDIA), have declined, signaling increased selling or profit-taking. While the hope for a breakout remains, a minor pullback seems more likely in the near term.
Also Read: Cardano (ADA) Surges 10% As Whales Move $6.08B—Will It Break $0.39?
In summary, ADA’s price trajectory is tightly linked to Bitcoin’s performance. If Bitcoin continues to rally, Cardano could break through the $0.39 resistance. But if volatility persists, particularly among short-term holders with gains, a pullback seems the more probable outcome.
With whales already taking some profits, Cardano investors should keep a close eye on the market in the coming days.
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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