In the ever-evolving cryptocurrency market, Cardano (ADA) whales have recently made significant moves, sparking optimism among investors and traders. Over the past 24 hours, these large-scale players have shifted a substantial 19.5 billion ADA tokens, equating to a remarkable $6.48 billion. This activity, as reported by the on-chain analytic firm IntoTheBlock, suggests that something substantial may be on the horizon for Cardano.
Whale Activity on the Rise
Adding to the intrigue, transactions exceeding $100,000 have surged by 10% within the past day. Data reveals that these whales have executed over 3,100 transactions during this period, nearing the weekly peak of 3,300 transactions. This significant uptick in large transactions not only outpaces Ethereum but also hints that whales might be gearing up to boost ADA. The cryptocurrency has been hovering close to its support level of $0.33 since July 2024, struggling to gain upward momentum.
Current Price Momentum
The flurry of whale activity has led to a noticeable impact on ADA’s price. The cryptocurrency experienced a 4.35% price increase following these transactions. However, at the time of writing, ADA is trading at approximately $0.333, reflecting a modest 1.25% rise over the past 24 hours. Interestingly, trading volume has decreased by 11% during the same period, signaling reduced trader participation amidst prevailing market uncertainties.
Cardano (ADA) Technical Analysis and Upcoming Levels
Despite the optimistic whale movements, technical analysis suggests that ADA remains in a bearish trend. The cryptocurrency has been on a downward trajectory since April 2024 and continues to trade below the 200 Exponential Moving Average (EMA) on a daily timeframe. The 200 EMA is a crucial technical indicator used by traders and investors to gauge long-term trends, with current readings pointing towards a bearish sentiment.
However, should ADA manage to close a weekly candle above the $0.35 mark, there is a strong possibility of a substantial rally. Analysts predict that such a move could propel ADA by 30%, pushing it towards its next resistance level at $0.45.
Bullish On-chain Metrics
Encouragingly, on-chain metrics align with the whales’ bullish outlook. Coinglass’s ADA Long/Short ratio currently stands at 1.02, indicating a predominantly bullish sentiment among traders. Additionally, ADA’s future open interest has risen by 2.7% over the past 24 hours, highlighting growing interest and engagement from the trading community during this challenging phase.
In conclusion, while Cardano (ADA) faces technical bearish signals, the recent surge in whale activity and supporting on-chain metrics provide a glimmer of hope for investors. As the market continues to navigate through uncertainties, ADA’s ability to break above key resistance levels will be crucial in determining its future trajectory.
