Cardano (ADA) could be on the verge of a significant price move, with multiple signals hinting at a bullish breakout in the coming days. Despite struggling to recover from its recent pullback, the cryptocurrency is now showing signs of renewed interest from large investors—possibly signaling the beginning of a reversal.
Whale Activity On The Rise
October started off with weak large holder flows, both in terms of inflows and outflows. However, a sudden surge in whale activity is changing the narrative. In the past 24 hours alone, large holder inflows peaked at 4.79 billion ADA, while outflows reached 4.72 billion ADA. This net positive flow suggests whales are accumulating ADA, potentially signaling a shift toward bullish sentiment.
This accumulation comes despite ADA’s recent price slump, indicating that large holders are capitalizing on the current low prices, perhaps in anticipation of a market recovery.
Surge in Long Positions Bolsters Bullish Sentiment
Further strengthening the bullish case is the increase in long positions over the past three days. This signals growing market confidence in ADA’s ability to break out of its current pattern. A rising number of long positions is often a precursor to upward price movements, reflecting optimism from traders betting on future gains.
ADA has been trading within a wedge pattern, characterized by ascending support and descending resistance lines. For the past two weeks, the cryptocurrency has hovered along the upper resistance line, indicating it is approaching a “squeeze zone” where a breakout is likely to occur.
Currently trading at $0.34, ADA’s Money Flow Indicator (MFI) suggests that liquidity has been steadily flowing into the cryptocurrency over the last seven days. However, the inflows have yet to trigger a strong bullish rally—suggesting that the market is waiting for a decisive move.
Weekend Rally or Another Letdown?
The renewed whale interest and surging long positions raise the probability of a bullish breakout, which could result in ADA climbing by 20% or more. However, the outcome isn’t guaranteed. Should ADA fail to build enough momentum, the possibility of a bearish breakdown remains on the table.
Also Read: Cardano (ADA) Whales Accumulate 17% Growth Potential Amidst Weak Trend Signals!
With the cryptocurrency nearing a critical price juncture, the next few days could prove decisive. Investors and traders alike are keeping a close eye on ADA’s movements as it teeters between a breakout and a breakdown.
Will the whales drive ADA to new heights, or will weak demand continue to stifle momentum? The answer could come as soon as this weekend.
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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