Cardano could see a surge in price in the near future due to the accumulation of ADA by whales, but there is also a risk of decline if profit-taking becomes more intense.
Recent data indicates bullish signals for Cardano, despite its recent downturn. Whales have been accumulating ADA, which could lead to a short-term price rise.
Investors in Cardano are hopeful for a potential breakout as the cryptocurrency approaches new year-to-date highs. However, there is also vulnerability to downturns, especially if profit-taking sentiment increases.
Whale activity in the Cardano market suggests a potential bullish comeback. Large holders of ADA, with holdings ranging from 1 million to 10 million ADA, have accumulated nearly 50 million ADA worth $30.3 million in the past ten days. This accumulation of 5.79 billion ADA indicates positive sentiment among these large holders, which could put upward pressure on Cardano’s price.
Although Cardano’s price has recently declined, the price-DAA divergence is indicating a sell signal. This divergence compares the movement of the asset’s price with the number of active addresses daily. In Cardano’s case, this suggests a likely short-term price rise. This highlights the complex relationship between price momentum, investor sentiment, and network adoption.
Cardano has faced challenges in recent weeks, with a significant price decrease over the past week and month. Whale transaction data suggests reduced interest from large holders, potentially indicating a sell-off. Analysts view these trends as bearish, warning of potential price stagnation or further declines. This sentiment is mirrored in ADA’s derivatives market, where whales have decreased long positions, while retail investors have increased their exposure.
Grayscale, the world’s largest digital asset manager, has removed ADA from its flagship Grayscale Digital Large Cap Fund, which may impact investor sentiment and the coin’s market prominence.
Despite these bearish trends, Cardano still maintains a strong market cap of over $21 billion. The trading volume for ADA in the past 24 hours is $254 million, with a circulating supply representing over 79% of the total supply. The current trading price of Cardano is $0.5906, showing a slight increase in the past 24 hours. However, there have been declines of over 20% in the past month and 9.29% in the past week.
Cardano currently exhibits a falling wedge candlestick pattern, which is typically seen as a bullish reversal signal in technical analysis. This pattern suggests a potential breakout and a significant rise in ADA’s price. Analysts anticipate a possible increase of around 32.91%, with ADA reaching a price of $0.813 if Cardano breaks out of this pattern.
However, there are concerns about the divergence between Cardano’s price and daily average addresses (DAA). This indicates a sell signal and a potential shift in market sentiment towards selling pressure. If this sentiment intensifies, it could lead to a decline in Cardano’s price, invalidating the falling wedge pattern and causing ADA to drop to $0.500. The conflicting signals in Cardano’s market dynamics present challenges for traders and investors.