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The cryptocurrency market has been a rollercoaster of late, with significant price swings causing confusion among investors. Despite this volatility, crypto whales seem to be seizing the moment, focusing their attention on Cardano (ADA). Reports from a prominent crypto analyst on X (formerly Twitter) reveal that whales have recently purchased 90 million ADA tokens over the past four days.
Whales have bought over 90 million #Cardano $ADA in the last 96 hours! pic.twitter.com/MkP8PFUmzE
— Ali (@ali_charts) January 12, 2025
Whale Accumulation Signals Confidence
This massive accumulation—equivalent to millions of dollars—signals a strong vote of confidence from large-scale investors. The buying spree suggests that whales perceive ADA’s current price levels as an ideal entry point, potentially anticipating a robust upside rally.
ADA’s Current Price Struggles
However, ADA’s price action has been less than stellar in the short term. After an impressive 7% gain yesterday, the token has retreated, declining over 2.85% in the last 24 hours. Currently trading near $0.968, the decline coincides with broader market uncertainty. Despite this, the trading volume for ADA surged by 27.5%, showcasing increased investor interest.
Also Read: Cardano (ADA) Price Struggles: Will Long-Term Holders Propel a Breakout Above $1.00?
Technical Analysis: Key Levels to Watch
From a technical perspective, ADA’s price has dropped back to its breakout level, which could serve as a retest before further upside momentum. Crucially, the altcoin remains above its 200 Exponential Moving Average (EMA) on the four-hour timeframe and the $0.955 support level. As long as ADA holds these levels, its bullish outlook remains intact.
Looking ahead, analysts predict that ADA could climb by 17.5% to hit the next resistance level of $1.135. The Relative Strength Index (RSI) indicates neither overbought nor oversold conditions, suggesting plenty of room for further gains.
An Ideal Buying Opportunity?
The combination of whale activity, technical indicators, and a bullish price action pattern points to a potentially lucrative buying opportunity for ADA. While short-term fluctuations persist, the long-term outlook appears promising, especially if the token maintains its support levels and bullish trajectory.
Investors and traders will be closely watching ADA in the coming days as it navigates these pivotal price levels. The next breakout could solidify Cardano’s position as a top contender in the altcoin market.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
