Cardano (ADA) has recently been thrust into the spotlight with a dramatic surge in whale activity. Over the past 24 hours, large transactions involving ADA have surged to an eye-watering $6.08 billion—equivalent to approximately $17.71 billion ADA. This flood of activity highlights a significant uptick in trading among major players. But should investors exercise caution?
ADA On Whale Alert
With Bitcoin (BTC) languishing in a consolidation phase, many investors appear to be turning their attention to Cardano. ADA has surged over 10% in the past week, drawing increased interest from traders. However, data from IntoTheBlock suggests an intriguing twist: while ADA’s price has been climbing, large holders are taking profits. Around 219 million ADA has flowed into exchanges recently—a staggering 606% increase from the previous day.
This uptick in selling activity coincided with Bitcoin hitting $58,000 and a key inflation index showing a 2.5% drop, which has bolstered expectations for an impending rate cut. As a result, the selling pressure on ADA seems to have been absorbed, leading to a modest 2% price increase to $0.3601 at the time of writing.
September Roadmap Sparks Excitement
The excitement around ADA is not unwarranted. The month kicked off with Cardano’s Chang upgrade, a significant step towards full decentralization. The upgrade has been a catalyst for increased network activity, with ADA reaching its highest daily active wallet count in 180 days—around 40,000.
Further fueling the enthusiasm is the launch of the Snek-Fun memecoin launchpad, which saw over 2,200 new coins created and $4.5 million in ADA trading volume on its first day. These developments have driven ADA’s value up, transitioning approximately 200,000 addresses from loss to profit, now holding about $4 billion worth of ADA.
If Cardano bulls maintain their momentum, they could push an additional 400,000 addresses into profit as ADA tests the $0.39 resistance level. This optimistic scenario hinges on whales refraining from selling, holders keeping their gains, and overall market sentiment remaining bullish.
Will $0.39 Be a Reality for ADA?
The critical test for ADA will be whether it can break through the $0.39 resistance level. For this to happen, bears will need to capitulate and allow the bullish trend to gain traction. While the Weighted Sentiment around Cardano has remained positive—peaking a day after the Chang upgrade—the 180-day mean coin age and MDIA have declined, suggesting increased profit-taking.
Also Read: Cardano (ADA) Surges 6% After $6B Transaction Spike – Can It Flip TRX?
A breakout to $0.39 is possible, but a minor pullback may be more likely in the short term. The fate of ADA’s price largely depends on Bitcoin’s performance. Without a significant boost from BTC, a pullback could be in the cards. Investors should keep a close eye on short-term holders with gains; if September continues to be volatile, they might decide to cash out.
As Cardano navigates this critical juncture, the interplay between whale activity, market sentiment, and Bitcoin’s performance will be key to determining whether ADA can sustain its upward trajectory or face a downturn.
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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