Cardano (ADA) has witnessed a significant surge in whale accumulation over the past week, with large investors purchasing over 180 million ADA tokens. This buying spree suggests renewed confidence from institutional and high-net-worth investors, signaling a potential bullish trend despite recent price fluctuations.
Whale Accumulation Signals Confidence in Cardano
On-chain data from Santiment reveals that wallets holding between 1,000,000 and 10,000,000 ADA have substantially increased their holdings. Notably, crypto analyst Ali Martinez highlighted that these investors have collectively accumulated over 180 million ADA, showcasing sustained interest in the asset even amidst market instability.
Historically, whale accumulation has been a precursor to bullish price movements. When large-scale investors accumulate ADA, the reduced circulating supply often leads to price stabilization and potential upward momentum. This trend suggests that Cardano could be gearing up for a strong price recovery if buying pressure remains consistent.
Price Predictions and Market Trends
Despite ongoing accumulation, ADA’s price has experienced volatility, with analysts emphasizing the importance of key support and resistance levels. Some market predictions, including speculation driven by The Simpsons’ alleged forecast, suggest ADA could rally as high as $36 in the long term. However, in the short term, ADA is currently testing support around $0.70, with discussions surrounding ETF developments potentially acting as a catalyst for further price movement.
Analyst Eilert’s Perspective on Price Patterns
Crypto analyst Eilert has pointed out that ADA’s current market behavior closely resembles its previous cycle. During the last bull run, Cardano retraced 52% from its high before entering an 11-week consolidation phase, allowing accumulation before a breakout. Currently, ADA has retraced 47% and is in its fifth week of consolidation, mirroring past trends.
If this pattern continues, Cardano could be positioned for a major price surge. In the previous cycle, the altcoin skyrocketed by 4,000% following a prolonged accumulation period. While past trends do not guarantee future performance, the historical data suggests that sustained whale interest may be setting the stage for a strong upward move.
Also Read: Cardano (ADA) at a Crossroads: Will the $0.80 Support Hold or Break?
At press time, ADA is trading at $0.6924, reflecting an 11.82% decline in the past week. With its market cap standing at $24.39 billion, investors are closely watching whether Cardano can capitalize on whale accumulation to drive a bullish turnaround.
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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