Amidst the ongoing market recovery following a substantial price decline in December 2024, ADA, the native token of the Cardano blockchain, has been making significant strides. This resurgence has captured the attention of cryptocurrency enthusiasts worldwide, driving a notable accumulation of ADA tokens.
ADA Whales Accumulate 40M Tokens
In a recent development, a well-known crypto expert shared on X (formerly Twitter) that whales have amassed over 40 million ADA tokens from exchanges within the past 48 hours. This substantial accumulation underscores a strategic move by whales, who began their buying spree after ADA breached a crucial trendline and broke out from a consolidation zone on the daily chart. This surge in interest highlights a potentially lucrative buying opportunity for retail investors. Notably, ADA experienced a remarkable 16% upward momentum following this large-scale purchase.
Understanding ADA’s Recent Struggles
Despite the recent bullish momentum, ADA’s price has been facing challenges, potentially linked to burgeoning rumors about a healthcare crisis in China. These external factors might be contributing to the current price decline and the ongoing correction phase that ADA is experiencing.
Examining Current Price Momentum
At present, ADA is trading close to $1.07, having seen a price decline of more than 2.1% in the past 24 hours. During this period, its trading volume has also taken a significant hit, plummeting by over 50%. This decline in trading activity suggests reduced participation and heightened caution among traders and investors.
ADA Technical Analysis and Future Projections
Despite these fluctuations on a global scale, ADA maintains a bullish outlook, with potential for continued upward momentum. According to expert technical analysis, the altcoin has surged impressively by 32% over the past three days, and it appears to be undergoing a corrective phase poised for further gains. This analysis provides a positive outlook for ADA in the coming days.
Predicting ADA’s Price Trajectory
Nonetheless, there remains a possibility that the market may prolong ADA’s price correction for a few more days. However, if ADA sustains its position above the crucial $1 mark, there is a strong likelihood that it could rise by an additional 25%, potentially reaching the $1.32 level in the near future. The market sentiment leans bullish, particularly with the impending inauguration of United States President-elect Donald Trump on January 20, 2025, which could significantly influence ADA’s price dynamics.
