Cardano (ADA) has recently seen significant whale activity, with large investors amassing over 180 million ADA tokens in just a week. This surge in accumulation suggests growing confidence from institutional and high-net-worth investors, despite the ongoing market fluctuations.
Whale Accumulation Signals Strong Buy Interest
Data from Santiment indicates a sharp increase in holdings by wallets containing between 1,000,000 and 10,000,000 ADA, with these investors adding a substantial amount to their positions. Crypto analyst Ali Martinez pointed out that this accumulation reflects strong buying interest, even amidst price volatility. Historically, similar whale activity has often preceded price stabilization and upward momentum for Cardano.
Whale accumulation plays a key role in reducing the circulating supply of ADA, which can create conditions for future price growth. This behavior mirrors previous instances where Cardano experienced bullish rallies, fueled by steady buying pressure.
Price Action and Key Support Levels
Despite the strong accumulation, Cardano’s price has faced recent declines. ADA has retraced 47% from its previous cycle high, currently trading at $0.6924. Analysts are closely watching the $0.70 support level, with speculation that it may act as a springboard for a recovery. Additionally, ongoing discussions about ETFs and growing market interest could serve as catalysts for a price rebound.
Crypto analysts, including Eilert, have noted that ADA’s current price pattern is reminiscent of its previous cycle, where a 52% retracement was followed by a consolidation phase before a significant breakout. This historical pattern suggests that Cardano could experience a similar price surge if support levels hold and market conditions align.
Historical Precedents Suggest Strong Potential
In its last major cycle, ADA saw a staggering 4,000% increase after consolidating near a similar support zone. While past performance is not an indication of future results, historical data indicates that prolonged accumulation often leads to substantial price movements.
At the time of writing, ADA’s price stands at $0.6924, reflecting an 11.82% drop in the last seven days. This decline has seen the market cap shrink by 7.37%, bringing it to $24.39 billion. As the market continues to evolve, Cardano investors remain focused on whether the ongoing accumulation phase will eventually lead to a significant rally.
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